Bean Company Uses a Job Order Cost System and Last

question 93

Essay

Bean Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor. Bean estimates that its overhead next period will be $65,000. The company also expects to incur $100,000 of direct labor. If Bean bases its overhead applied on direct labor cost, what should be the overhead allocation rate for the next period?

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Definitions:

N-Methylacetamide

An organic compound characterized by a methyl group attached to the nitrogen atom of an acetamide.

IUPAC

The International Union of Pure and Applied Chemistry, an organization that sets standards for naming chemical compounds and elements, among other activities in the chemistry field.

Hydrogen Bonded

Describes a type of chemical bond that occurs when a hydrogen atom, which is covalently bonded to a highly electronegative atom, forms an electrostatic or partial covalent bond with another electronegative atom.

Tertiary Amides

Amides derived from carboxylic acids where the nitrogen atom is bonded to three other carbon atoms, not including the carbonyl carbon.