National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows: $$\begin{array} { l r r }
& \text { Estimated } & \text { Actual } \
\text { Overhead cost } & \$ 174,000 & \$ 171,100 \
\text { Direct labor hours } & 5,800 & 5,900 \
\text { Direct labor cost } & \$ 87,000 & \$ 89,975
\end{array}$$ How much is the predetermined overhead rate?

Question

National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows: $$\begin{array} { l r r } 
& \text { Estimated }  & \text { Actual } \
\text { Overhead cost } & \$ 174,000 & \$ 171,100 \
\text { Direct labor hours } & 5,800 & 5,900 \
\text { Direct labor cost } & \$ 87,000 & \$ 89,975
\end{array}$$ How much is the predetermined overhead rate?

Quizplus · Accepted Answer

The Answer of National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows: $$\begin{array} { l r r } 
& \text { Estimated }  & \text { Actual } \
\text { Overhead cost } & \$ 174,000 & \$ 171,100 \
\text { Direct labor hours } & 5,800 & 5,900 \
\text { Direct labor cost } & \$ 87,000 & \$ 89,975
\end{array}$$ How much is the predetermined overhead rate?

National Production Company Applies Manufacturing Overhead Based on Direct Labor