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Author Question: Sable Company is debating the use of direct labour cost or direct labour hours as the cost ... (Read 677 times)

Alygatorr01285

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on: Jan 4, 2020
Sable Company is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

Estimated direct labour cost$500,000
Actual direct labour cost$450,000
Estimated manufacturing overhead costs$400,000
Actual manufacturing overhead costs$350,000
Estimated direct labour hours250,000
Actual direct labour hours245,000


If Sable Company uses direct labour cost as the allocation base, what would the predetermined manufacturing overhead rate be?
◦ 78%
◦ 89%
◦ 70%
◦ 80%
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by Alygatorr01285 on Jan 4, 2020

mcni194

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Reply #1 on: Jan 4, 2020
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Myranda Libunao

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Reply #2 on: Sep 30, 2020
Thank you!


Lộc Nguyễn

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Reply #3 on: Dec 20, 2021
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