Asked by

Ibrahim Khalil
on Oct 11, 2024

verifed

Verified

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

A) $64.04 per DLH
B) $82.13 per DLH
C) $30.64 per DLH
D) $23.50 per DLH

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the accounting period begins based on estimated costs and activity levels.

Traditional Costing

An accounting method that assigns overhead costs to products based on a standard measure, often leading to less accuracy in modern, complex manufacturing environments.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production process.

  • Compute predetermined overhead rates utilizing traditional costing methodologies.
verifed

Verified Answer

KS
Kyarah SousaOct 12, 2024
Final Answer:
Get Full Answer