Use the following information for the next 2 questions. Allen's Accounting Services uses job costing and applies overhead using a normal costing system using professional labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labor cost is $800,000 and estimated direct labor hours are 8,000. This period actual overhead cost was $426,400, actual direct labor cost was $820,000, and actual direct labor hours were 8,200.
-What is the overhead allocation rate?
A) $60/hour
B) $55/hour
C) $52/hour
D) $50/hour

Question

Use the following information for the next 2 questions.  Allen's Accounting Services uses job costing and applies overhead using a normal costing system using professional labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labor cost is $800,000 and estimated direct labor hours are 8,000. This period actual overhead cost was $426,400, actual direct labor cost was $820,000, and actual direct labor hours were 8,200.
-What is the overhead allocation rate?
A) $60/hour 
B) $55/hour 
C) $52/hour 
D) $50/hour

Quizplus · Accepted Answer

The Answer of Use the following information for the next 2 questions.  Allen's Accounting Services uses job costing and applies overhead using a normal costing system using professional labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labor cost is $800,000 and estimated direct labor hours are 8,000. This period actual overhead cost was $426,400, actual direct labor cost was $820,000, and actual direct labor hours were 8,200.
-What is the overhead allocation rate?
A) $60/hour 
B) $55/hour 
C) $52/hour 
D) $50/hour

Use the Following Information for the Next 2 Questions