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Marigold Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year. Budgeted Actual Overhead cost $1,253,200 $1,224,200 Machine hours 56,700 49,400 Direct labor hours 104,000 98,400 Overhead is applied on the basis of direct labor hours. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate $ per direct labor hour

User InigoD
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The question is incomplete. Here is the complete question

Marigold Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year. Budgeted. Actual Overhead cost $1,253,200 $1,224,200 Machine hours 56,700 49,400 Direct labor hours 104,000 98,400 Overhead is applied on the basis of direct labor hours. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate $ per direct labor hour. Determine the amount of overhead applied for the year.

Answer:

Predetermined Overhead rate=$12.05

Amount of overhead applied for the year= $1,185,720

Step-by-step explanation:

Marigolds Inc, provided the following the following information for the year

Budgeted Actual

Overhead cost $1,253,200 $1,224,200

Machine hours. 56,700. 49,400

Direct labour. 104,000. 98,400

The predetermined overhead rate can be calculated as follows

= 1,253,200/104,000

= $12.05 per direct labor hour

The amount of overhead applied for the year can be calculated as follows

= 98,400×12.05

= $1,185,720

Hence the predetermined overhead rate is $12.05 and the amount of overhead applied for the year is $1,185,720

User Elif
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