Chpt 2 Homework - Part 2 - 1 Estimated cost and operating data for three companies for the upcoming year follow Company X Direct laborhours

# Chpt 2 Homework - Part 2 - 1 Estimated cost and operating...

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1. Estimated cost and operating data for three companies for the upcoming year follow: Company X Company Y Company Z Direct labor- hours 85,000 50,000 52,000 Machine-hours 24,000 58,000 30,000 Direct materials cost \$ 404,000 \$ 317,000 \$ 215,000 Manufacturing overhead cost \$ 501,500 \$ 237,800 \$ 408,500 Predetermined overhead rates are computed using the following allocation bases in the three companies: Allocation Base Company X Direct labor-hours Company Y Machine-hours Company Z Direct materials cost Requirement 1: Compute each company's predetermined overhead rate. (Round your answers to 2 decimal places. Omit the "\$" & "%" signs in your response.) Predetermined overhead rate Company X \$ per DLH Company Y \$ per MH Company Z % Explanation: Predetermined overhead rates: Company X: Predetermine d = Estimated total manufacturing overhead cost overhead rate Estimated total amount of the allocation base = \$501,500 = \$5.90 per DLH 85,000 DLHs