Bella,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $25,750.Additional estimated information is given below.

Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places. )

Question

Bella,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $25,750.Additional estimated information is given below.

Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places. )

Quizplus · Accepted Answer

B)
 11ea86ed_2bb0_3204_8b27_c525cf5fba6c_TB3056_00 Predetermined overhead allocation rate = Total estimated overhead costs / Total estimated quantity of the overhead allocation base = $25,750 / $49,240 = 52.29% of direct labor cost

Bella,IncManufactures Two Kinds of Bags-Totes and Satchels