Millenium Manufacturing Is Considering Two Methods for Applying Overhead $\quad \$ 871,875$

question 76

Short Answer

Millenium Manufacturing is considering two methods for applying overhead. Estimated data for the next year, 2013, follows. Estimated direct labor costs $\quad \$ 871,875$
Estimated direct labor hours $\quad 90,000$
Estimated overhead costs $\quad \$ 558,000$ 1. What would be the overhead application rate based on direct labor costs?
2. What would be the overhead application rate based on direct labor hours?
3. If a job requires 650 hours of direct labor, what would be the amount of overhead applied to the job using the rate based on direct labor hours?

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Definitions:

Spicules

Small, spike-like structures found in various organisms, such as sponges and some animals, serving as structural supports or defense mechanisms.

Invertebrate Animals

Animals lacking a vertebral column, including species such as insects, mollusks, and crustaceans.

Protistan Ancestors

Refers to the early eukaryotic organisms from which modern protists, and indirectly all eukaryotic life, are believed to have descended.

Cnidarians

A phylum of aquatic animals that includes jellyfish, corals, and sea anemones, characterized by a simple body structure with a single opening and a body wall made of two layers of cells.