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MC Qu. 96 K Company estimates that overhead costs... K Company estimates that overhead costs for the next year will be $3,700,000 for indirect labor and $960,000 for factory utilities. The company uses
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16 votes
16 votes
MC Qu. 96 K Company estimates that overhead costs... K Company estimates that overhead costs for the next year will be $3,700,000 for indirect labor and $960,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. Of 125,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate

User Rodrigo Salvo
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1 Answer

13 votes
13 votes

Answer:

37.28

Step-by-step explanation:

Calculation to determine the company's plantwide overhead rate

Plantwide overhead rate = (3,700,000+960000)/125000

Plantwide overhead rate =4,660,000/125,000

Plantwide overhead rate = 37.28

Therefore the company's plantwide overhead rate is 37.28

User Abhi V
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