Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
The predetermined overhead rate is closest to:
a. $1.80 per direct labor-hour
b. $5.50 per direct labor-hour
c. $9.20 per direct labor-hour
d. $3.70 per direct labor-hour
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
Answers (1)
What is the hottest planet. A. venus B. Africa C. mars
Answers (1)
Companies are allowed to depart from the requirement that a change in accounting principle be reported retrospectively when: (Select all that apply.
Answers (1)
g In May direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $30,000, the direct labor cost was::
Answers (1)
A and B have agreed that A will befriend C in order to make C popular in exchange for B's payment of $500 to A. Is this a valid contract? Yes No
Answers (1)
New Questions in Business
Jane contracts Tom, a home developer, to build her a new house. In the contract it states that all necessary parts of the home must be complete before the contract is to be considered finished.
Answers (1)
How do property rights benefit entrepreneurs? by enabling them to purchase capital and use it as they see fit by allowing them to use their employees' property by facilitating the use of public property for private businesses by freeing unused
Answers (1)
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,200 direct labor-hours will be required in May. The variable overhead rate is $8.90 per direct labor-hour.
Answers (1)
Genepa Corporation manufactures home appliances and other electronic products. Genepa is planning to introduce a new refrigerator model.
Answers (1)
Indirect costs are traced to cost objects. Cost drivers are used to allocate indirect costs to cost objects. An allocation rate is calculated by dividing the allocation base by the total cost to be allocated.
Answers (1)