A Manufacturing Company Applies Overhead Using Direct Labor Cost

question 188

Short Answer

A manufacturing company applies overhead using direct labor cost.The company's Work in Process Inventory account has a $15,000 debit balance after all posting is completed,and the cost sheet of the one job still in process shows direct material costs of $6,600 and direct labor costs of $3,000.What is the company's predetermined overhead rate?

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Definitions:

Power

The ability or capacity to do something or act in a particular way; often refers to the amount of control one has over circumstances or other entities.

Planes

A flat or relatively smooth surface; points of reference by which positions or parts of the body are indicated.

Points Of Reference

Specific locations or landmarks used to establish positions or to measure distances.

Lesion

An injury or wound; a circumscribed area of pathologically altered tissue.