ice Gradebook ORION Downloadable eTextbook ment Jones Manufacturing Company make

Question

ice Gradebook ORION Downloadable eTextbook ment Jones Manufacturing Company makes two products. The company's budget includes $536,250 of overhead. In the past, the company alocated overhead based on estimated total direct labor hours of 21,450. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information Estimated Estimated Activities Cost Orders $70,000 5,000 orders Machine setups Shipping 12,420 26,685 $109,105 540 machine hours 59,300 shipments Calculate the company's overhead rate based on total direct hours The company's overhead per direct labor hour Click if you would like to Show Work for this question: Open Show Work SAVE FOR LATER Attemptsi 0 of 1 used version 4.24SI The parts of this question must be completed in order. This part wir be available when you complete the part above 2000:2018JohnymeASoesJn& AE Rights Reserved A Division of kenwiessens.rs kinde Privac.Poter ?0 888a F2 dee

Explanation / Answer

(a) The company’s overhead rate = $536,250 / 21,450 = $25 per direct labor hour

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