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Author Question: Here are selected basic data for Garrett Company: Estimated manufacturing overhead $240,000 Factory ... (Read 55 times)

CBme

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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 hours36,000 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
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by CBme on Jan 4, 2020

potomatos

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Reply #1 on: Jan 4, 2020
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CBme

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Reply 2 on: Jan 4, 2020
Wow, this really help

sultana.d

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

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