Topeka Company Topeka Company has two departments (Processing and Packaging)and uses a job-order costing system.Topeka applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for July:
Refer to Topeka Company What is the overhead application rate for Packaging?

Question

Topeka Company Topeka Company has two departments (Processing and Packaging)and uses a job-order costing system.Topeka applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for July:
 Refer to Topeka Company What is the overhead application rate for Packaging?

Quizplus · Accepted Answer

The overhead application rate for Packaging can be calculated as follows:
Overhead rate = Total estimated overhead cost / Total estimated direct labor cost
= $54,000 / $24,000
= $2.25 per direct labor dollar.

Topeka Company Topeka Company Has Two Departments (Processing and Packaging)and