Ask Question
BusinessBusiness
25 July, 12:49

Smith Office Equipment Company's budgeted manufacturing overhead is $ 5 comma 400 comma 000$5,400,000. Overhead is allocated on the basis of direct labor hours. The budgeted direct labor hours for the period are 30 comma 00030,000. What is the manufacturing overhead rate? A) $195.00

B) $15.00

C) $54.00

D) $180.00

+5
Answers (1)
  1. 25 July, 14:29
    0
    The correct answer is D.

    Explanation:

    Giving the following information:

    The budgeted manufacturing overhead is $5,400,000. Overhead is allocated based on direct labor hours. The budgeted direct labor hours for the period are 30,000.

    To calculate the estimated manufacturing 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 = 5,400,000/30,000 = $180 per direct labor hour.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Smith Office Equipment Company's budgeted manufacturing overhead is $ 5 comma 400 comma 000$5,400,000. Overhead is allocated on the basis ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
With widespread diffusion of personal computers, encyclopedia content, which was once delivered via hardcover books such as the gold standard Encyclopaedia Britannica, was now being replaced by electronic media.
Answers (1)
Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is planning on selling 1500 coffee cups. In order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.
Answers (1)
A statement that makes a factual claim about how the world actually works is called a positive statementA statement that makes a claim about how the world should be is called a normative statement
Answers (1)
Jing is considering starting a new business selling organic groceries. It would cost her $350,000 a year to rent store space and buy the groceries from a wholesaler, and she would have to quit her current job and give up a $70,000 annual salary. a.
Answers (1)
Some scholars suggest that an analysis of the economic impact of immigration should include an accurate count of the numbers and life experiences of illegal immigrants in the United States.
Answers (1)
New Questions in Business
Interest rates generally reflect the potential elects of initation the level of risk in an investment the real value of the investment the amount of money invested
Answers (1)
What is a variable expense? A. An expense that is the same during some months, and different during other months. B. An expense that is the same from month to month. C. An expense that is different from month to month. D. None of the above.
Answers (2)
Calculator Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14. Each model must spend time on a special machine.
Answers (1)
If US workers can produce everything in less time than Mexican workers, it is not possible for the US to gain from trade with Mexico. True/False
Answers (1)
A variable cost remains constant per unit at various levels of activity. a. True b. False
Answers (1)
Home » Business » Smith Office Equipment Company's budgeted manufacturing overhead is $ 5 comma 400 comma 000$5,400,000. Overhead is allocated on the basis of direct labor hours. The budgeted direct labor hours for the period are 30 comma 00030,000.
Sign Up Forgot Password?