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25-06-2021
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Salge Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $8.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 5,300 direct labor-hours will be required in September. The company recomputes its predetermined overhead rate every month. The pre-determined overhead rate for September should be:___.
a. $18.30.
b. $14.10.
c. $8.10.
d. $22.20.

Respuesta :

abiolataiwo2015 abiolataiwo2015

25-06-2021

Answer:

d. $22.20

Explanation:

Calculation to determine what the pre-determined overhead rate for September should be:

Using this formula

Predetermined overhead rate = Variable overhead rate per direct labor hour + Estimated fixed manufacturing overhead/Estimated direct labor hour

Let plug in the formula

Predetermined overhead rate=$8.10 + ($74,730/5,300)

Predetermined overhead rate= $8.10+$14.1

Predetermined overhead rate= $22.20 per direct

Therefore the pre-determined overhead rate for September should be:$22,20

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