Ramirez Company uses a predetermined overhead rate.Overhead for the next twelve months is estimated to be $500,000.Emily applies overhead as a percentage of direct labor cost.Direct labor costs are estimated to be $800,000 for the next year.During the year actual direct labor costs amounted to $700,000 and the actual overhead was as follows:

Question

Quizplus · Accepted Answer

The Answer of Ramirez Company uses a predetermined overhead rate.Overhead for the next twelve months is estimated to be $500,000.Emily applies overhead as a percentage of direct labor cost.Direct labor costs are estimated to be $800,000 for the next year.During the year actual direct labor costs amounted to $700,000 and the actual overhead was as follows:

Ramirez Company Uses a Predetermined Overhead Rate