Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs.The production details for the year are given below: $\begin{array}{|l|r|}
\hline \text { Total manufacturing overhead costs estimated at the beginning }\
\text { of the year}&\$140,000\
\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 330,000 \
\hline \text { Total direct labor hours estimated at the beginning of the year } & 11,000 \text { direct labor } \
\hline \text { Actual manufacturing overhead costs for the year } & \$ 150,000 \
\hline \text { Actual direct labor costs for the year } & \$ 360,000 \
\hline & 11,600 \text { direct labor } \
\text { Actual direct labor hours for the year } & \text { hours }\
\hline
\end{array}$
Calculate the manufacturing overhead allocation rate for the year based on the above data.(Round your final answer to two decimal places. )

Question

Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs.The production details for the year are given below: $\begin{array}{|l|r|}
\hline \text { Total manufacturing overhead costs estimated at the beginning }\
\text { of the year}&\$140,000\
\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 330,000 \
\hline \text { Total direct labor hours estimated at the beginning of the year } & 11,000 \text { direct labor } \
\hline  \text { Actual manufacturing overhead costs for the year } & \$ 150,000 \
\hline \text { Actual direct labor costs for the year } & \$ 360,000 \
\hline & 11,600 \text { direct labor } \
\text { Actual direct labor hours for the year } & \text { hours }\
\hline
\end{array}$
 Calculate the manufacturing overhead allocation rate for the year based on the above data.(Round your final answer to two decimal places. )

Quizplus · Accepted Answer

The manufacturing overhead allocation rate is calculated by dividing the estimated total manufacturing overhead costs by the estimated total direct labor costs. In this case, the estimated total manufacturing overhead costs are $140,000 and the estimated total direct labor costs are $330,000. Therefore, the manufacturing overhead allocation rate is $140,000/$330,000 = 42.42%.

Archangel Manufacturing Calculated a Predetermined Overhead Allocation Rate at the Beginning