Use the following information for the next 3 questions.
Asadi Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labor hours. Information for 20x5 is as follows:
-The estimated overhead allocation rate for 20x5 was
A) $2.75
B) $3.30
C) $3.33
D) $2.76

Question

Use the following information for the next 3 questions.
Asadi Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labor hours. Information for 20x5 is as follows: 
-The estimated overhead allocation rate for 20x5 was
A) $2.75 
B) $3.30 
C) $3.33 
D) $2.76

Quizplus · Accepted Answer

The overhead allocation rate is calculated by dividing the total estimated overhead costs by the total estimated allocation base. The choice $3.33 is likely the result of such a calculation based on the given data.

Use the Following Information for the Next 3 Questions