Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. Using direct labor hours as a base, what was the predetermined overhead allocation rate? Multiple Choice $7.08 per direct labor hour. $6.00 per direct labor hour. $7.50 per direct labor hour. $6.67 per direct labor hour.

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. Using direct labor hours as a base, what was the predetermined overhead allocation rate? Multiple Choice $7.08 per direct labor hour. $6.00 per direct labor hour. $7.50 per direct labor hour. $6.67 per direct labor hour.

Name: Austin Company uses a job order cost accounting system. The company's
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Description: Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at$10/hour) and that factory overhead would be $1,500,000 for the current period. Using direct labor hour

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...

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Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
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