Answered

IDNLearn.com: Your go-to resource for finding precise and accurate answers. Join our platform to receive prompt and accurate responses from experienced professionals in various fields.

Kay Company budgets overhead cost of $4,104,000 for the next year. The company uses direct labor hours as its overhead allocation base. If 90,000 direct labor hours are planned for the next year, how much overhead would be assigned to a product requiring 5 direct labor hours

Sagot :

Parrainidn

Based on the fact that Kay Company will use direct labor hours as its overhead allocation base, the overhead for a product with 5 labor hours is $228.

What is the overhead assigned to the product?

This can be found as:

= Total overhead cost / Number of labor hours x Product labor hours

Solving gives:

= 4,104,000 / 90,000 x 5

= 45.6 x 5

= $228

Find out more on assigning overhead costs at https://brainly.com/question/22812280.

#SPJ1

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Discover insightful answers at IDNLearn.com. We appreciate your visit and look forward to assisting you again.