
A manufacturer estimates that it will incur variable indirect costs for the month of October of $70,000 and $30,000 of fixed costs. The company uses direct labor hours to calculate the predetermined overhead rate and predicted that 3,000 direct labor hours would be used in October. Actual direct labor hours amounted to 3,200.
Required:
A) What is the variable predetermined indirect rate for October?
B) What is the fixed predetermined indirect cost rate for October?
C) What is the total allocation rate per direct labor hour for October?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q51: Problems with costing occur when _.
A) incorrect
Q52: A job that shows low profitability may
Q53: Managers and accountants collect most of the
Q54: Fixed costs remain constant at $450,000 per
Q55: Place the following steps in the order
Q57: For a given job the direct costs
Q58: X-Industries manufactures 3-D printers. For each unit,
Q59: A job-cost sheet details the _.
A) direct
Q60: The formula for the predetermined indirect cost
Q61: Smith and Jones CPA firm employs 12
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents