Bella,IncManufactures Two Kinds of Bags-Totes and Satchels Calculate the Predetermined Overhead Allocation Rate

question 212

Multiple Choice

Bella,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 $25,250.Additional estimated information is given below. $\begin{array}{|l|l|l|} \hline& \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 45 \\\hline \text { Direct labor cost per unit } & \$ 50 & \$ 65 \\\hline \text { Number of units } & 500 & \$ 90 \\\hline\end{array}$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)

• A) 101.00%
• B) 50.15%
• C) 100.40%
• D) 1.51%

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