Business
Business, 20.04.2020 23:07, adiafloresp2dkbx

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead costs, $680,000, and direct materials costs, $400,000. At year-end 2017, the company’s records show that actual overhead costs for the year are $897,200. Actual direct material cost had been assigned to jobs as follows.

Jobs completed and sold $ 420,000 Jobs in finished goods inventory 76,000 Jobs in work in process inventory 53,000 Total actual direct materials cost $ 549,000 Determine the predetermined overhead rate for 2017.

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