Modiste,Inc Calculate the Predetermined Overhead Allocation Rate

question 131

Multiple Choice

Modiste,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $24,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 43 \\\hline \text { Direct labor cost per unit } & \$ 50 & \$ 61 \\\hline \text { Number of units } & 530 & 380 \\\hline\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places. )

• A)90.57%
• B)48.31%
• C)96.58%
• D)1.36%

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Definitions:

Loss on Disposal

The financial loss recorded when an asset is sold or disposed of for less than its carrying amount on the balance sheet.

Compadrazgo

A cultural practice in Hispanic communities involving a formal relationship between parents and their child's godparents, facilitating social and spiritual bonds.

Familism

A social structure where the needs and interests of the family are more important and prioritized over the needs of any of the individual family members.

Machismo

A cultural emphasis on masculinity and male dominance, valuing traits such as assertiveness, bravery, and the provision for one's family.