Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July—Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z: Estimated total fixed manufacturing overhead$ 13,000Estimated variable manufacturing overhead per direct labor-hour$ 1.00Estimated total direct labor hours to be worked2,000Total actual manufacturing overhead costs incurred$ 12,800 Job YJob ZDirect materials$ 13,000$ 8,000Direct labor cost$ 21,000$ 7,500Actual direct labor hours worked1,400500What is the plantwide predetermined overhead rate? Multiple Choice $8.50 $6.50 $7.50 $5.50

PREDETERMINED OVERHEAD RATE Predetermined rate means an indirect cost rate. predetermined overhead…

Answered: Assume a company had no jobs in…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...

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Question

Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July—Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z:

Estimated total fixed manufacturing overhead	$ 13,000
Estimated variable manufacturing overhead per direct labor-hour	$ 1.00
Estimated total direct labor hours to be worked	2,000
Total actual manufacturing overhead costs incurred	$ 12,800