Question

Golf View Inc. estimates that it will require 300,000 direct labor-hours to meet the coming period’s...

Golf View Inc. estimates that it will require 300,000 direct labor-hours to meet the coming period’s estimated production level. In addition, the company estimates total fixed manufacturing overhead at $150,000, and variable manufacturing overhead costs of $1.50 per direct labor hour.

What is its predetermined overhead rate per direct labor hour?

$2.55 per direct labor-hour

$2.00 per direct labor-hour

$2.15 per direct labor-hour

$2.10 per direct labor-hour

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

Estimated direct labor-hours = 300000

Estimated total fixed manufacturing overhead = $150000

Variable manufacturing overhead = $1.50 per direct labor hour.

Predetermined Overhead Rate = Variable manufacturing overhead per direct labor hour + Estimated total fixed manufacturing overhead/Estimated direct labor-hours

= 1.50 + 150000/300000

= 1.50 + 0.5

= $2.00 per direct labor hour.

Predetermined Overhead Rate for Bear Corp. = $2.00 per direct labor hour

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bear Corp. estimates that it will require 140,000 direct labor-hours to meet the coming period’s estimated...
Bear Corp. estimates that it will require 140,000 direct labor-hours to meet the coming period’s estimated production level. In addition, the company estimates total fixed manufacturing overhead at $250,000, and variablemanufacturing overhead costs of $3.25 per direct labor hour. What is the Predetermined Overhead Rate for Bear Corp.?
2. Sigma Corporation estimates its plantwide predetermined overhead rate annually on the basis of direct labor-hours....
2. Sigma Corporation estimates its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $559,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Sigma’s actual manufacturing overhead cost for the year was $758,696 and its actual total direct labor was 34,500 hours....
Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the...
Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 29,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $577,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $722,648 and its actual total direct labor was 29,500 hours. Required: Compute the...
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At...
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 39,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $503,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $691,149 and its actual total direct labor was 39,500 hours. Required:...
Your company computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At...
Your company computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Your company's actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21,000 hours....
5. Assume (1) a company’s plantwide predetermined overhead rate is $13.00 per direct labor-hour, and (2)...
5. Assume (1) a company’s plantwide predetermined overhead rate is $13.00 per direct labor-hour, and (2) its job cost sheet for Job X shows that this job incurred direct materials and direct labor charges of $500 and $360, respectively. If Job X’s total job cost is $1,289, how many direct labor-hours were worked on this job? 6. Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) estimated machine-hours to be worked during the period of 55,600 hours,...
Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the...
Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 29,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $508,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $656,884 and its actual total direct labor was 29,500 hours. Required: Compute the...
Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that total...
Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 250,000 hours. The estimated variable overhead is OMR7 per hour and the estimated fixed overhead costs are OMR750,000. Calculate the predetermined overhead rate. Select one: a. OMR3.00 b. OMR11.00 c. None of the answers given d. OMR0.10 e. OMR10.00 CLEAR MY CHOICE
ABC Company estimates the following at the beginning of the year: Estimated direct labor hours                          &nbsp
ABC Company estimates the following at the beginning of the year: Estimated direct labor hours                                                                  25,000 hours Estimated fixed manufacturing overhead                                           $40,000 Estimated variable manufacturing overhead per direct labor hour $3 During 20x4 ABC Company actually incurred $100,000 in manufacturing overhead, and used 22,000 in direct labor hours. Calculate the amount of overapplied or underapplied manufacturing overhead for the period. a.) 13,800 overapplied b.) 1,200 overapplied c.) 1,200 underapplied d.) 13,800 underapplied
Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the...
Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 65,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $487,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $505,700 and its actual total direct labor was 70,900 hours. Required: 1. Compute...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT