A furniture corporation manufactures two models of furniture-Standard and Deluxe.The total estimated manufacturing overhead costs are $64,350.The following estimates are available: $$\begin{array} { | l | r | r | }
\hline & \text { Standard } & \text { Deluxe } \
\hline \text { Direct materials cost per unit } & \$ 240 & \$ 290 \
\hline \text { Direct labor cost per unit } & \$ 120 & \$ 140 \
\hline \text { Number of units } & 240 & 500 \
\hline
\end{array}$$ The company uses direct labor costs as the base to allocate manufacturing overhead.Calculate the predetermined overhead rate.(Round your answer to two decimal places.)
A) 31.76%
B) 33.94%
C) 191.52%
D) 65.13%

Question

A furniture corporation manufactures two models of furniture-Standard and Deluxe.The total estimated manufacturing overhead costs are $64,350.The following estimates are available: $$\begin{array} { | l | r | r | } 
\hline & \text { Standard } & \text { Deluxe } \
\hline \text { Direct materials cost per unit } & \$ 240 & \$ 290 \
\hline \text { Direct labor cost per unit } & \$ 120 & \$ 140 \
\hline \text { Number of units } & 240 & 500 \
\hline
\end{array}$$ The company uses direct labor costs as the base to allocate manufacturing overhead.Calculate the predetermined overhead rate.(Round your answer to two decimal places.)
A) 31.76%
B) 33.94%
C) 191.52%
D) 65.13%

Quizplus · Accepted Answer

The Answer of A furniture corporation manufactures two models of furniture-Standard and Deluxe.The total estimated manufacturing overhead costs are $64,350.The following estimates are available: $$\begin{array} { | l | r | r | } 
\hline & \text { Standard } & \text { Deluxe } \
\hline \text { Direct materials cost per unit } & \$ 240 & \$ 290 \
\hline \text { Direct labor cost per unit } & \$ 120 & \$ 140 \
\hline \text { Number of units } & 240 & 500 \
\hline
\end{array}$$ The company uses direct labor costs as the base to allocate manufacturing overhead.Calculate the predetermined overhead rate.(Round your answer to two decimal places.)
A) 31.76%
B) 33.94%
C) 191.52%
D) 65.13%

A Furniture Corporation Manufactures Two Models of Furniture-Standard and Deluxe