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

question 150

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: $$\begin{array} { | l | l | } \hline \text { Manufacturing overhead costs allocated to production } & \$ 189,000 \\\hline \text { Actual direct materials cost } & \$ 540,000 \\\hline \text { Actual direct labor cost } & \$ 2,450,000 \\\hline \text { Actual direct labor hours } & 9400 \text { direct labor hours } \\\hline \text { Estimated machine hours } & 180,000 \text { machine hours } \\\hline\end{array}$$ Based on the above information,calculate Q-dot's predetermined overhead allocation rate.(Round your answer to two decimal places.)

• A) $1.05 per machine hour
• B) 7.71% of direct labor cost
• C) 35.00% of direct materials cost
• D) $20.11 per direct labor hour

---

Definitions:

Nonprogrammed Decisions

Decisions that are unique, require special handling, and are typically made in unpredictable or uncertain environments.

Proven Solutions

Strategies or methods that have been tested and shown to achieve desired results effectively.

Define The Problem

The initial step in the problem-solving process, involving the identification and clear articulation of an issue or obstacle that needs to be addressed.

Five-step Model

Often refers to processes or methodologies broken down into five distinct stages; specific application varies across disciplines, including problem-solving and decision-making frameworks.