Based on this information the predetermined overhead rate per direct labor dollar is

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\$500 and \$300 for materials, and charges of \$400 and \$600 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: A) 83% . B) 120% . C) 40% . D) 300% . 9. Paulson Company uses a predetermined overhead rate based on machine hours to apply
1. Feb 20, 2019 · Management projects \$1.4 million in factory overhead. Divide the \$1.4 million by 100,000 hours and you get \$14 overhead per direct labor hour. Since regular widgets use two hours labor, you ...
2. Predetermined Overhead Rate = \$48,000,000 / 150,000 hours; Predetermined Overhead Rate = \$320 per hour; Therefore, the predetermined overhead rate of TYC Ltd for the upcoming year is expected to be \$320 per hour. Predetermined Overhead Rate Formula - Example #2. Let us take the example of ort GHJ Ltd which has prepared the budget for next year.
3. 34. Describe and Identify Cost Drivers. As you've learned, the most common bases for predetermined overhead are direct labor hours, direct labor dollars, or machine hours. Each of these costs is considered a cost driver because of the causal relationship between the base and the related costs: As the cost driver's usage increases, the cost ...
4. Solution. In the traditional costing system, cost equals materials cost plus labor cost plus manufacturing overhead costs charged at the pre-determined overhead rate. The pre-determined overhead rate based on direct labor hours = \$5,404,639/20,000 = \$270 per labor hour. The actual number of labor hours spent on the order is 250.
5. For example, the number of units in ending finished goods inventory comes from the Production Budget (Figure 2 in Part 2), the cost per direct labor hour comes from the Direct Labor Budget (Figure 9, Part 2), and the predetermined overhead rate comes from the Manufacturing Overhead Budget (Figure 1 here).
6. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the predetermined operating room overhead rate for the year. Round your answer to the nearest dollar. per hour b.
7. Information concerning manufacturing overhead and labor for the year follows. Compute the predetermined overhead rate. Actual manufacturing overhead = \$150,000 Estimated manufacturing overhead ...
8. applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions\$8,710, Fixed overhead cost \$5,226, Variable overhead cost per direct labor-dollar \$ 0. Required: 1. Compute the predetermined overhead rate. 2.
9. Solution. In the traditional costing system, cost equals materials cost plus labor cost plus manufacturing overhead costs charged at the pre-determined overhead rate. The pre-determined overhead rate based on direct labor hours = \$5,404,639/20,000 = \$270 per labor hour. The actual number of labor hours spent on the order is 250.