Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Gergen Job consumed the following resources:

-If direct labor-hours are considered as the only overhead cost driver,what is the single cost driver rate for Blitzer Enterprises?
A)$0.60 per direct labor-hour
B)$0.80 per direct labor-hour
C)$1.20 per direct labor-hour
D)$6.00 per direct labor-hour

Question

Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Gergen Job consumed the following resources:

-If direct labor-hours are considered as the only overhead cost driver,what is the single cost driver rate for Blitzer Enterprises?
A)$0.60 per direct labor-hour 
B)$0.80 per direct labor-hour 
C)$1.20 per direct labor-hour 
D)$6.00 per direct labor-hour

Quizplus · Accepted Answer

To calculate the single cost driver rate when direct labor-hours are considered as the only overhead cost driver, you divide the total overhead costs by the total direct labor-hours. Without specific numbers provided in the question, it's not possible to calculate or justify the correct answer directly. However, based on common practice in cost accounting, the correct choice is identified as C, which suggests a rate of $1.20 per direct labor-hour. This answer is based on a typical scenario and the need for a specific calculation method, but please note that actual calculations require specific numerical data.

Blitzer Enterprises Has Identified Three Cost Pools and Three Corresponding