Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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The estimated cost and operating data for three manufacturing plants
for the coming year are as follows:
Plant X Plant Y Plant Z
Data
Direct labor-hours
40,000
20,000
30,000
Machine-hours
20,000 40,000 10,000
Direct materials
$200,000 $150,000 $180,000
Manufacturing Overhead $280,000 $240,000 $540,000||
Predetermined overhead rates are computed using the following
bases:
⚫ Plant X: Direct labor-hours
⚫ Plant Y: Machine-hours
⚫ Plant Z: Direct materials cost
Required:
Calculate the predetermined overhead rate for each plant.
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Transcribed Image Text:The estimated cost and operating data for three manufacturing plants for the coming year are as follows: Plant X Plant Y Plant Z Data Direct labor-hours 40,000 20,000 30,000 Machine-hours 20,000 40,000 10,000 Direct materials $200,000 $150,000 $180,000 Manufacturing Overhead $280,000 $240,000 $540,000|| Predetermined overhead rates are computed using the following bases: ⚫ Plant X: Direct labor-hours ⚫ Plant Y: Machine-hours ⚫ Plant Z: Direct materials cost Required: Calculate the predetermined overhead rate for each plant.
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