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CWN Company Uses a Job Order Costing System and Last

question 73

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CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor.CWN estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor cost.If CWN bases applied overhead on direct labor cost,its predetermined overhead rate for the next period should be:


Definitions:

Hot-glue Gun

A handheld tool that melts adhesive sticks to apply hot glue for bonding materials quickly.

Wood Glue

An adhesive specifically formulated for bonding wood surfaces together.

Output Units

The units of production or service delivery output by a process or system within a given period.

Labour Hours

The total amount of working time executed by employees, usually measured in hours, for producing goods or delivering services.

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