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EB10.
LO 4.5Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?

Respuesta :

Answer:

$34 per hour

Explanation:

Direct labor hour s:

= Labor cost ÷ Rate per hour

= $36,550 ÷ $17

= 2,150 Direct labor hours

Predetermined overhead rate :

= Overhead applied on the basis of direct labor hour ÷ Number of hours

= $73,100 ÷ 2,150 hrs

= $34 per hour

Therefore, the predetermined overhead rate using the labor rate of $17 per hour is $34 per hour.

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