Washtenaw Corporation uses a job-order costing system.The following data are for last year: Washtenaw applies overhead using a predetermined rate based on direct labor-hours.What predetermined overhead rate was used last year?

Question

Washtenaw Corporation uses a job-order costing system.The following data are for last year:  Washtenaw applies overhead using a predetermined rate based on direct labor-hours.What predetermined overhead rate was used last year?

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total amount of the allocation base
= $39,000 F1F1F1S1F1F1F10 12,000 direct labor-hours
= $3.25 per direct labor-hour

Washtenaw Corporation Uses a Job-Order Costing System