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Author Question: Wisteria Company is debating the use of direct labour cost or direct labour hours as the cost ... (Read 102 times)

fbq8i

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Wisteria 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 $440,000
Actual direct labour cost $450,000
Estimated manufacturing overhead costs $350,000
Actual manufacturing overhead costs $353,000
Estimated direct labour hours 250,000
Actual direct labour hours 245,000

Determine the following:
A) Predetermined manufacturing overhead rate using direct labour cost as the allocation base
B) Predetermined manufacturing overhead rate using direct labour hours as the allocation base
C) Allocated manufacturing overhead costs based on direct labour cost for the year
D) Allocated manufacturing overhead costs based on direct labour hours for the year


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Marked as best answer by fbq8i on Jan 4, 2020

mathjasmine

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fbq8i

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review


juliaf

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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