High School









14. The following information applies to MBA Manufacturing: Overhead is applied by DL cost. What is the overhead rate per DLS? ANSWER:

Answer :

The overhead rate per direct labor hour (DLH) for MBA Manufacturing cannot be determined without additional information on the total overhead cost and the total direct labor cost.

  • In order to calculate the overhead rate per direct labor hour (DLH), we need to know the total overhead cost and the total direct labor cost. The overhead rate is determined by dividing the total overhead cost by the total direct labor cost.
  • In this case, we are only given that overhead is applied by DL cost, meaning that the overhead cost is allocated based on the direct labor cost. Without specific values for the total overhead cost and the total direct labor cost, we cannot calculate the overhead rate per DLH.
  • To illustrate, let's consider a hypothetical example. If MBA Manufacturing has a total overhead cost of $100,000 and a total direct labor cost of $50,000, we can calculate the overhead rate per DLH by dividing the total overhead cost by the total direct labor cost: $100,000 / $50,000 = $2 per DLH.
  • Since we don't have the necessary information, we cannot determine the overhead rate per DLH for MBA Manufacturing.
  • Without additional details on the total overhead cost and the total direct labor cost, we cannot calculate the overhead rate per direct labor hour (DLH) for MBA Manufacturing.

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