EXERCISE 8-21 (CONTINUED)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH08 ACTIVITY BASED COSTING
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH08 ACTIVITY BASED COSTING

1. a. The predetermined overhead rate is computed as follows:

Estimated manufacturing overhead cost

Predetermined = overhead rate Estimated direct labor-hours

$780,000

= = $7.80 per DLH