At the beginning of the year, Era Sdn. Bhd. estimated the following costs: Overhead=RM 450,000 Direct Labor Cost=600,000 Era uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, the direct labor cost was RM 46,300. i) Calculate the predetermined overhead rate for the year. ii) Calculate the overhead applied to production in September.
At the beginning of the year, Era Sdn. Bhd. estimated the following costs: Overhead=RM 450,000 Direct Labor Cost=600,000 Era uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, the direct labor cost was RM 46,300. i) Calculate the predetermined overhead rate for the year. ii) Calculate the overhead applied to production in September.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 10EB: Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct...
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1. At the beginning of the year, Era Sdn. Bhd. estimated the following costs:
Overhead =RM 450,000
Direct Labor Cost=600,000
Era uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, the direct labor cost was RM 46,300.
i) Calculate the predetermined overhead rate for the year.
ii) Calculate the overhead applied to production in September.
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