Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:
Determine the following:
a)Predetermined manufacturing overhead rate using direct labor cost as the allocation base
b)Predetermined manufacturing overhead rate using direct labor hours as the allocation base
c)Allocated manufacturing overhead costs based on direct labor cost for the year
d)Allocated manufacturing overhead costs based on direct labor hours for the year

Question

Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:  
Determine the following:
a)Predetermined manufacturing overhead rate using direct labor cost as the allocation base
b)Predetermined manufacturing overhead rate using direct labor hours as the allocation base
c)Allocated manufacturing overhead costs based on direct labor cost for the year
d)Allocated manufacturing overhead costs based on direct labor hours for the year

Quizplus · Accepted Answer

The Answer of Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:  
Determine the following:
a)Predetermined manufacturing overhead rate using direct labor cost as the allocation base
b)Predetermined manufacturing overhead rate using direct labor hours as the allocation base
c)Allocated manufacturing overhead costs based on direct labor cost for the year
d)Allocated manufacturing overhead costs based on direct labor hours for the year

Oakland Company Is Debating the Use of Direct Labor Cost