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The Brookstone Company Produces 9 Volt Batteries and AAA Batteries

question 48

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The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given:  Actual Overhead $325,000 Estimated Overhead $350,000 Estimated Activity: 9 volt battery 100,000 direct labor hours  AAA battery 400,000 direct labor hours  Actual Activity: 9 volt battery 125,000 direct labor hours  AAA battery 400,000 direct labor hours  Units Produced: 9 volt battery 500,000 AsA battery 250,000\begin{array} { | l | l | } \hline \text { Actual Overhead } & \$ 325,000 \\\hline \text { Estimated Overhead } & \$ 350,000 \\\hline \text { Estimated Activity: } & \\\hline 9 \text { volt battery } & 100,000 \text { direct labor hours } \\\hline \text { AAA battery } & 400,000 \text { direct labor hours } \\\hline \text { Actual Activity: } & \\\hline 9 \text { volt battery } & 125,000 \text { direct labor hours } \\\hline \text { AAA battery } & 400,000 \text { direct labor hours } \\\hline \text { Units Produced: } & \\\hline 9 \text { volt battery } & 500,000 \\\hline \text { AsA battery } & 250,000 \\\hline\end{array}
What is the predetermined overhead rate? (round to 2 decimal places)

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Definitions:

Concealment

The act of hiding or not disclosing important information intentionally.

Insurable Interest

A principle that requires an individual to have a legitimate financial or emotional stake in the preservation of the subject of insurance to obtain a policy.

Insurance Policy

A contract issued by an insurer to an insured, detailing the terms under which the insurer agrees to financially protect the insured against specific risks in exchange for premiums.

Indemnified

Protected against liability, loss, or damage, typically through a legal agreement where one party agrees to compensate another for any financial harm that arises.

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