A single indirect-cost rate based on direct manufacturing, Ask an Expert

Accounting

Rhett Company has two departments, Machining and Assembly. The following estimates are for the coming year:

Machining Assembly
Direct manufacturing labor-hours 10,000 50,000
Machine-hours 40,000 20,000
Manufacturing overhead $200,000 $400,000

a. A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is:

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M939090

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