Ask Question
24 February, 21:58

Boaz Company had the following information: Estimated Overhead $ 300,000 Actual Overhead $ 350,000 Estimated labor hours 75,000 Actual labor hours 84,000 What is the predetermined overhead rate if labor hours are used as the allocation base? a. $3.57 per labor-hour

b. $4.00 per labor-hour

c. $4.67 per labor-hour

d. $4.17 per labor-hour

+2
Answers (1)
  1. 24 February, 23:46
    0
    b. $4.00 per labor-hour

    Explanation:

    The computation of the predetermined overhead rate is shown below:

    Predetermined overhead rate = Estimated overhead : Estimated labor hours

    = $300,000 : 75,000 labor hours

    = $4.00 per hour

    By dividing the estimated overhead by the estimated labor hours we can find out the predetermined overhead rate and we did the same in the above calculation
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Boaz Company had the following information: Estimated Overhead $ 300,000 Actual Overhead $ 350,000 Estimated labor hours 75,000 Actual ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers