Darkside Company gathered the following information for the year ended December 31: Direct labor cost incurred for the year Estimated manufacturing overhead costs Estimated direct labor cost Work in process inventory, Dec. 31 Finished goods inventory, Dec. 31 Cost of goods sold Estimated direct labor hours $180,800 $264,100 $212,100 $51,900 $63,600 $141,600 260,200 What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base? OA. 117% of direct labor cost OB. 101% of direct labor cost OC. 125% of direct labor cost OD. 85% of direct labor cost
Darkside Company gathered the following information for the year ended December 31: Direct labor cost incurred for the year Estimated manufacturing overhead costs Estimated direct labor cost Work in process inventory, Dec. 31 Finished goods inventory, Dec. 31 Cost of goods sold Estimated direct labor hours $180,800 $264,100 $212,100 $51,900 $63,600 $141,600 260,200 What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base? OA. 117% of direct labor cost OB. 101% of direct labor cost OC. 125% of direct labor cost OD. 85% of direct labor cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Darkside Company gathered the following information for the year ended December 31:
Direct labor cost incurred for the year
Estimated manufacturing overhead costs
Estimated direct labor cost
Work in process inventory, Dec. 31
Finished goods inventory, Dec. 31
Cost of goods sold
Estimated direct labor hours
$180,800
$264,100
$212,100
$51,900
$63,600
$141,600
260,200
What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?
OA. 117% of direct labor cost
OB. 101% of direct labor cost
OC. 125% of direct labor cost
OD. 85% of direct labor cost
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