Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $32 Satchels $43 $51 $65 530 370 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 94.34% OB. 94.31% OC. 49.92% OD. 1.49%
Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $32 Satchels $43 $51 $65 530 370 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 94.34% OB. 94.31% OC. 49.92% OD. 1.49%
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 4EB: Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the...
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