Bean Company Uses a Job Order Cost System and Last

question 93

Essay

Bean Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor. Bean estimates that its overhead next period will be $65,000. The company also expects to incur $100,000 of direct labor. If Bean bases its overhead applied on direct labor cost, what should be the overhead allocation rate for the next period?

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Definitions:

Keying Errors

Typographical mistakes made during data entry or typing.

Passive Voice

A grammatical voice in which the subject of the sentence is acted upon by the verb, highlighting the action rather than the doer.

Active Voice

A grammatical voice in which the subject of the sentence performs the action expressed by the verb, leading to clearer, more direct sentences.

Business Communicators

Individuals within an organization who are responsible for the exchange of information and messages among colleagues, clients, and the public.