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

---

Definitions:

Standards

Established benchmarks or criteria that define the quality, quantity, and functionality of products, services, or processes.

Conduct

The manner in which a person behaves, especially on a particular occasion or in a specific context.

Safety Recommendations

Guidelines or advice intended to ensure that activities or operations are conducted in a manner that minimizes the risk of harm or injury.

Pesticides

Pesticides are chemical or biological agents used to control pests that can damage crops, animals, or carry diseases.