Bella,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 $25,250.Additional estimated information is given below. $$\begin{array} { | l | l | l | }
\hline & \text { Totes } & \text { Satchels } \
\hline \text { Direct materials cost per unit } & \$ 33 & \$ 45 \
\hline \text { Direct labor cost per unit } & \$ 50 & \$ 65 \
\hline \text { Number of units } & \$ 00 & \$ 90 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)
A) 101.00%
B) 50.15%
C) 100.40%
D) 1.51%

Question

Bella,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 $25,250.Additional estimated information is given below. $$\begin{array} { | l | l | l | } 
\hline & \text { Totes } & \text { Satchels } \
\hline \text { Direct materials cost per unit } & \$ 33 & \$ 45 \
\hline \text { Direct labor cost per unit } & \$ 50 & \$ 65 \
\hline \text { Number of units } & \$ 00 & \$ 90 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)
A) 101.00%
B) 50.15%
C) 100.40%
D) 1.51%

Quizplus · Accepted Answer

The predetermined overhead allocation rate is calculated by dividing the total estimated overhead costs by the total estimated direct labor costs, then multiplying by 100 to get a percentage. The total direct labor cost is calculated as follows: (50 * 100) + (65 * 90) = 5,000 + 5,850 = 10,850. The overhead rate is then (25,250 / 10,850) * 100 = 232.72%. However, none of the options match this calculation, suggesting a possible mistake in the interpretation of the question or in the provided options. Given the options, none directly match the correct calculation based on the provided data.

Bella,IncManufactures Two Kinds of Bags-Totes and Satchels Calculate the Predetermined Overhead Allocation Rate