Ask Experts Questions for FREE Help !
Ask
    mslaurayee's Avatar
    mslaurayee Posts: 3, Reputation: 1
    New Member
     
    #1

    Dec 4, 2011, 12:00 PM
    Calculate the rate using machine hours as the allocation base.
    The following data were taken from the records of a manufacturing company. The company has been calculating the actual indirect cost rate using direct labor hours as the allocation base. Calculate the rate using machine hours as the allocation base.

    Actual total indirect costs $1,152,000
    Budgeted total indirect costs $1,216,000
    Actual direct labour costs $3,200,000
    Actual direct labour rate $50 per hour
    Actual machine hours 300,000 hours
    # Of employees 32


    a) $60.67
    b) $4.05
    c) $10.67
    d) $7.89
    e) $3.84

    Can someone help me out I believe the answer is e but not so sure. Is the correct formula looking for machine hours is: indirect cost / by the hours = machine hours .

    Thanks guys

Check out some similar questions!

Calculate the machine hours rate [ 0 Answers ]

Hi, When calculating the machine hours: Say that the question was given: Actual total indirect costs Budgeted total indirect costs Actual indirect labor cost Actual direct labor rate Actual machine hours

Calculate the total cost of the job using machine hours as the allocation base [ 1 Answers ]

ABC Corporation manufactured a new electronic part for Apple’s new cell phone. In particular, it manufactured 100,000 of these parts for Apple’s order. ABC wants to calculate the job cost and the cost per part. For this particular job, direct materials were $250,000 and direct labor was...

Calculate the cost per part using direct labor hours as the allocation base [ 0 Answers ]

ABC Corporation manufactured a new electronic part for Apple’s new cell phone. In particular, it manufactured 100,000 of these parts for Apple’s order. ABC wants to calculate the job cost and the cost per part. For this particular job, direct materials were $250,000 and direct labor was...

Calculate the total cost of the job using direct labor hours as the allocation base? [ 0 Answers ]

ABC Corporation manufactured a new electronic part for Apple’s new cell phone. In particular, it manufactured 100,000 of these parts for Apple’s order. ABC wants to calculate the job cost and the cost per part. For this particular job, direct materials were $250,000 and direct labor was...


View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.