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:

Evaluation

The process of assessing or judging the performance, effectiveness, or value of something.

Measure Progress

The process of evaluating the advancement or development of a project, student, or organization towards achieving specific goals.

Plan Objectives

Specific, measurable goals that an organization or project aims to achieve as part of its strategic or operational planning.

Reputational Objective

A goal set by individuals or organizations to maintain or improve their standing and perception among stakeholders and the public.