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Other Fields Homework Help Accounting Topic started by: bernie2981 on Nov 16, 2015



Title: Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation
Post by: bernie2981 on Nov 16, 2015
Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

Actual direct labor hours    232,000
Estimated direct labor hours    250,000
Actual manufacturing overhead costs   $350,000
Estimated manufacturing overhead costs   $400,000
Actual direct labor cost   $465,000
Estimated direct labor cost   $500,000

If Nadal Company uses direct labor hours as the allocation base, what would the allocated manufacturing overhead be for the year?
A) $400,000
B) $371,200
C) $324,800
D) $350,000


Title: Re: Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocat
Post by: nuclei on Nov 16, 2015
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Title: Re: Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation
Post by: bernie2981 on Dec 1, 2015
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓