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Use your knowledge of how costs function (period or product) and traceability (direct or indirect) to determine what wou

Posted: Sun Jun 05, 2022 6:49 pm
by answerhappygod
Use your knowledge of how costs function (period or product) and
traceability (direct or indirect) to determine what would be part
of overhead so as to compute the predetermined overhead
rate for R.A.Mona. Assume the company intends to
use direct labor cost as the basis to allocate
overhead. R.A.Mona estimates the following figures for the
coming fiscal year: (Note: The costs are in no particular
order.)
Property Taxes on office building $ 18,000
Salary of office staff 450,000
Rent on factory building 145,000
Direct Labor 600,000
Office supplies 8,000
Depreciation on factory building 30,000
Dividends 50,000
Factory utilities 170,000
Sales commissions 60,000
Interest expense 35,500
Salary of factory supervisors 250,000
Indirect Material 109,000
Advertising expense 50,000
Depreciation on factory equipment 150,000
Wages of factory maintenance workers 240,000
Small tools for factory 25,100
Repair of factory equipment. 5,000
Depreciation of office equipment 15,000
Raw materials purchases 2,350,000
Lease for office copier 22,500
Group of answer choices
193%
697%
187%
283%
200%