Modiste,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $26,000.Additional estimated information is given below.

Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places. )
A)92.69%
B)49.41%
C)94.50%
D)1.58%

Question

Modiste,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $26,000.Additional estimated information is given below.

Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places. )

Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places. )
A)92.69% 
B)49.41% 
C)94.50% 
D)1.58%

Quizplus · Accepted Answer

11ea8a42_4fb1_ac56_8b44_55a52f0b434f_TB5024_00 Predetermined overhead allocation rate = Total estimated overhead costs / Total estimated quantity of the overhead allocation base = $26,000 / $52,620 = 49.41% of direct labor cost