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.