Q-Dot Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 190

Multiple Choice

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours. It has provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Manufacturing overhead costs allocated to production } & \$ 185,000 \\\hline \text { Actual direct materials cost } & \$ 560,000 \\\hline \text { Actual direct labor cost } & \$ 2,500,000 \\\hline \text { Actual direct labor hours } & 9230 \text { direct labor hours } \\\hline \text { Estimated machine hours } & 180,000 \text { machine hours } \\\hline\end{array}$$ Based on the above information, calculate Q-dot's predetermined overhead allocation rate. (Round your answer to two decimal places.)

• A) $1.03 per machine hour
• B) 7.40% of direct labor cost
• C) 33.04% of direct materials cost
• D) $20.04 per direct labor hour

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Definitions:

Temperatures

Measurements reflecting the degree of heat present in a substance or environment, often expressed in degrees Celsius, Fahrenheit, or Kelvin.

Weekly Salaries

The amount of money or compensation paid to an employee for work performed during a week, often expressed as an annual figure divided by 52 weeks.

Boxplot

A graphical representation that shows the distribution of data points based on a five-number summary: minimum, first quartile, median, third quartile, and maximum.

Histogram

A graphical representation of data that groups numbers within ranges and displays them as bars.