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?

Box 1: Select the best answer

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?

Box 1: Select the best answer

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?

Box 1: Select the best answer