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Plant, Co. estimates that selling costs will be $10,000 for the month, direct labor will be $80,000 using a standard rate of $40/hour, direct materials will be $10,000, indirect manufacturing costs will be $20,000, and the machines will run 50,000 hours to produce 2,500 units. What is the overhead allocation rate if the company bases that allocation on direct machine hours?


Plant, Co. estimates that selling costs will be $10,000 for the month, direct labor will be $80,000 using a standard rate of $40/hour, direct materials will be $10,000, indirect manufacturing costs will be $20,000, and the machines will run 50,000 hours to produce 2,500 units. What is the overhead allocation rate if the company bases that allocation on direct labor dollars?


Plant, Co. estimates that selling costs will be $10,000 for the month, direct labor will be $80,000 using a standard rate of $40/hour, direct materials will be $10,000, indirect manufacturing costs will be $20,000, and the machines will run 50,000 hours to produce 2,500 units. What is the overhead allocation rate if the company bases that allocation on direct labor hours?