Wellington Company has analyzed its overhead costs and derived a general formula for their behavior: $30,000 + $15 per direct labor hour employed. The company expects to use 60,000 direct labor hours during the next accounting period.
What overhead rate per Direct Labor hour should be applied to jobs worked during the period?

Question

Wellington Company has analyzed its overhead costs and derived a general formula for their behavior: $30,000 + $15 per direct labor hour employed. The company expects to use 60,000 direct labor hours during the next accounting period. 
What overhead rate per Direct Labor hour should be applied to jobs worked during the period?

Quizplus · Accepted Answer

The Answer of Wellington Company has analyzed its overhead costs and derived a general formula for their behavior: $30,000 + $15 per direct labor hour employed. The company expects to use 60,000 direct labor hours during the next accounting period. 
What overhead rate per Direct Labor hour should be applied to jobs worked during the period?

Wellington Company Has Analyzed Its Overhead Costs and Derived a General