Ask Question
13 April, 02:03

The Work in Process Inventory account of a manufacturing company has a $5,633 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,300 and direct labor cost of $1,100. Therefore, the company's predetermined overhead rate is:

+3
Answers (1)
  1. 13 April, 04:19
    0
    overhead rate is 203 %

    Explanation:

    given data

    debit balance = $5633

    material cost = $2300

    labor cost = $1100

    to find out

    overhead rate

    solution

    we calculate overhead rate by given formula that is

    overhead rate = total overhead cost / labor cost ... 1

    here total overhead cost = debit balance - material cost - labor cost

    total overhead cost = 5633 - 2300 - 1100

    total overhead cost = $2233

    so from equation 1

    overhead rate = total overhead cost / labor cost

    overhead rate = $2233 / $1100

    overhead rate = 2.03

    so overhead rate = 203 %
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Work in Process Inventory account of a manufacturing company has a $5,633 debit balance. The company applies overhead using direct ...” 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