Asked by mackenzie maison on Jun 12, 2024
Verified
Gallucci Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The predetermined overhead rate is closest to:
A) $7.53 per labor-hour
B) $7.85 per labor-hour
C) $14.31 per labor-hour
D) $14.92 per labor-hour
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a related activity.
Electrical Motor
A device that converts electrical energy into mechanical energy, commonly used in a wide range of applications from household appliances to industrial machinery.
Standard Labor-Hours
The estimated time that should be required to complete a single unit of production, serving as a benchmark for performance and cost control.
- Employ the predefined overhead rate in the computation of costs.
Verified Answer
Learning Objectives
- Employ the predefined overhead rate in the computation of costs.
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