Ask Question
13 January, 10:28

Landen Company uses a single plantwide overhead rate based on direct labor hours. Total budgeted overhead costs are $200,000. Total budgeted direct materials are $50,000 and total budgeted direct labor hours are 80,000. What is the plantwide overhead rate per direct labor hour?

+4
Answers (1)
  1. 13 January, 12:39
    0
    The plantwide overhead rate per direct labor hour is $2.50 per labor hour.

    Explanation:

    Total budgeted overhead costs = $200,000

    Total budgeted direct materials = $50,000

    Total budgeted direct labor hours = 80,000 hours

    Over head rate per labor hour = Total budgeted overhead costs / Total budgeted direct labor hours

    Over head rate per labor hour = $200,000 / 80,000

    Over head rate per labor hour = $2.50 per labor hour
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Landen Company uses a single plantwide overhead rate based on direct labor hours. Total budgeted overhead costs are $200,000. Total ...” 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