Selected information from the budget of the Khalid Corp.at the beginning of the year follows:
$$\begin{array} { l c }
\text { Estimated factory overhead } & \$ 132,000 \
\text { Estimated direct labor hours } & 55,000 \text { hours } \
\text { Estimated machine hours } & 41,250 \text { hours } \
\text { Estimated direct labor cost } & \$ 825,000 \
\text { Actual factory overhead } & \
\text { incured during the year } & \$ 144,000
\end{array}$$
Calculate the predetermined overhead allocation rate if the company uses the following as a basis:
(A.Direct labor hours.
(B.Direct labor cost.
(C.Machine hours.

Question

Selected information from the budget of the Khalid Corp.at the beginning of the year follows:
 $$\begin{array} { l c } 
\text { Estimated factory overhead } & \$ 132,000 \
\text { Estimated direct labor hours } & 55,000 \text { hours } \
\text { Estimated machine hours } & 41,250 \text { hours } \
\text { Estimated direct labor cost } & \$ 825,000 \
\text { Actual factory overhead } & \
\text { incured during the year } & \$ 144,000
\end{array}$$ 
Calculate the predetermined overhead allocation rate if the company uses the following as a basis:
(A.Direct labor hours.
(B.Direct labor cost.
(C.Machine hours.

Quizplus · Accepted Answer

The Answer of Selected information from the budget of the Khalid Corp.at the beginning of the year follows:
 $$\begin{array} { l c } 
\text { Estimated factory overhead } & \$ 132,000 \
\text { Estimated direct labor hours } & 55,000 \text { hours } \
\text { Estimated machine hours } & 41,250 \text { hours } \
\text { Estimated direct labor cost } & \$ 825,000 \
\text { Actual factory overhead } & \
\text { incured during the year } & \$ 144,000
\end{array}$$ 
Calculate the predetermined overhead allocation rate if the company uses the following as a basis:
(A.Direct labor hours.
(B.Direct labor cost.
(C.Machine hours.

Selected Information from the Budget of the Khalid Corp Calculate the Predetermined Overhead Allocation Rate If the Company Uses