Explore BrainMass

Explore BrainMass

    Predetermined overhead rate

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The work in process inventory for the Smith Corporation has a balance of $4800 at the end of an accounting period. The job-cost sheets of two incomplete jobs show charges of $800 and $400 for materials used and charges of $600 and $1000 for direct labor used. From this information, it appears that Smith Corporation is using a predetermined rate, as a percentage of direct labor costs of:
    A. 240%
    B. 125%
    C. 80%
    D. 41.7%

    © BrainMass Inc. brainmass.com June 4, 2020, 12:31 am ad1c9bdddf
    https://brainmass.com/business/accounting/predetermined-overhead-rate-343848

    Solution Summary

    The solution explains how to calculate the predetermined overhead rate.

    $2.19

    ADVERTISEMENT