Kamrock applies manufacturing overhead costs to products at a budgeted indirect-cost rate
of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special
order of the Toy Mouse product. Estimates for this order include: Direct materials of $50,000;
600 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total
Manufacturing overhead cost estimates for this special order total
C) $60 × 600 dlh = $36,000
Mark Papers employs 15 full-time employees and 10 trainees. Direct and indirect costs are
applied on a professional labor-hour basis that includes both employee and trainee hours.
Following is information for 2014:
Annual salary of each employee
Annual salary of each trainee
Total professional labor-hours
What are the budgeted direct-cost rate and the budgeted indirect-cost rate,
respectively, per professional labor-hour?
21. If the common cost is over-allocated to A, then it is necessarily under-allocated to B. In
product costing settings, when this happens, it is termed______
Which following case is likely to benefit from ABC systems?