Author Question: Here are selected basic data for Garrett Company: Estimated manufacturing overhead $240,000 Factory ... (Read 98 times)

CBme · **on:** Jan 4, 2020

Here are selected basic data for Garrett Company:

Estimated manufacturing overhead	$240,000	Factory utilities	$29,100
Estimated labour hours	35,000	Indirect labour	$23,500
Actual direct labour hours	36,000	Sales commissions	$53,700
Estimated direct labour cost	$300,000	Factory rent	$49,200
Actual direct labour cost	$320,000	Factory property taxes	$28,100
Factory depreciation	$67,200	Indirect materials	$33,000

If the Garrett Company allocates overhead based on direct labour cost, what is the predetermined manufacturing overhead rate?
◦ 75% of direct labour cost
◦ 125% of direct labour cost
◦ 94% of direct labour cost
◦ 80% of direct labour cost

potomatos · **Reply #1 on:** Jan 4, 2020

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