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16 March, 11:22

Aspen Technologies has the following budget dа ta: Estimated direct labor hours 10,400 Estimated direct labor dollars $63,700 Estimated factory overhead costs $156,600 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a.$12.05 b.$22.59 c.$18.07 d.$15.06

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  1. 16 March, 13:39
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    The correct anwer is D.

    Explanation:

    Giving the following information:

    Estimated direct labor hours 10,400

    Estimated factory overhead costs $156,600

    To calculate the estimated overhead rate, we need to use the following formula:

    Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

    Estimated manufacturing overhead rate = 156,600/10,400 = $15.06 per direct labor hour.
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Home » Business » Aspen Technologies has the following budget dа ta: Estimated direct labor hours 10,400 Estimated direct labor dollars $63,700 Estimated factory overhead costs $156,600 If factory overhead is to be applied based on direct labor hours, the
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