If annual overhead costs are expected to be $ 750,000 and direct labor costs are expected to be $ 1,000,000 , then if the activity base is direct labor costs :
$ 1.33 is the predetermined overhead rate .
for every dollar of manufacturing overhead , 75 cents of direct labor will be assigned .
a predetermined overhead rate cannot be determined .
for every dollar of direct labor , 75 cents of manufacturing overhead will be assigned .
Multiple Choice Question 112 |
Gulick Company developed the following data for the current year : |
Beginning work in process inventory |
$ 240,000 |
Direct materials used |
144,000 |
Actual overhead |
288,000 |
Overhead applied |
216,000 |
Cost of goods manufactured |
264,000 |
Total manufacturing costs |
720,000 |
Gulick Company ' s ending work in process inventory is
$ 480,000 .
$ 456,000 .