Modiste,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $26,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | }
\hline & \text { Totes } & \text { Satchels } \
\hline \text { Direct materials cost per unit } & \$ 32 & \$ 45 \
\hline \text { Direct labor cost per unit } & \$ 55 & \$ 63 \
\hline \text { Number of units } & 510 & 390 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)
A) 92.69%
B) 49.41%
C) 94.50%
D) 1.58%

Question

Modiste,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $26,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | } 
\hline & \text { Totes } & \text { Satchels } \
\hline \text { Direct materials cost per unit } & \$ 32 & \$ 45 \
\hline \text { Direct labor cost per unit } & \$ 55 & \$ 63 \
\hline \text { Number of units } & 510 & 390 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)
A) 92.69%
B) 49.41%
C) 94.50%
D) 1.58%

Quizplus · Accepted Answer

The Answer of Modiste,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $26,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | } 
\hline & \text { Totes } & \text { Satchels } \
\hline \text { Direct materials cost per unit } & \$ 32 & \$ 45 \
\hline \text { Direct labor cost per unit } & \$ 55 & \$ 63 \
\hline \text { Number of units } & 510 & 390 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)
A) 92.69%
B) 49.41%
C) 94.50%
D) 1.58%

Modiste,Inc Calculate the Predetermined Overhead Allocation Rate