Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. terri computed the pre-determined overhead rate. s

Terri computed the pre-determined overhead rate. She estimated that 440,000 direct labor hours were going to...

80.2K

Verified Solution

Question

Accounting

Terri computed the pre-determined overhead rate. She estimatedthat 440,000 direct labor hours were going to be used for theupcoming year. Her boss wanted her to change the estimate to420,000 direct labor hours even though he knows that this amount isprobably going to be wrong. 1) What is the effect of changing theestimated direct labor hours on the pre-determined overhead ratecomputation? 2) Should Terri change the estimated direct laborhours to 420,000? Why or why not?

Answer & Explanation Solved by verified expert
3.7 Ratings (361 Votes)
1 Estimated labor hours play a significant role in computing predetermined overhead rate It is directly related to the predetermined overhead rate ie when labour hours are decreased the overhead rate will also decrease Therefore by    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Your company currently has $1,000 par, 6% coupon bonds with 10 years to maturity and a...

Programming
1.2K views

Q1) Discover ambiguities or omissions in the following statement of requirements for part of a Automated...

Psychology
1.2K views

Patricia Kuhl: The linguistic genius of babies. Please watch this Ted Talk and then answer the...

Civil Engineering
1.2K views

1. Do research on the Curriculum Development Centre (CDC) in Malaysia. Find out what the department...

Basic Math
1.2K views

A car of 100kg is driven down a slope located at 21 m distance at...

Basic Math
1.2K views

do you think Chivington s campaign against the Cheyenne and Arapaho Indians was unavoidable Why...

Basic Math
1.2K views

As a smart consumer you are always on the lookout for sales coupons and rebates...

Calculus
1.2K views

A company s total cost in millions of dollars is given by C t 80...

Algebra
1.2K views

The revenue R from the number of sales x of a certain videogame is described...

Accounting
1.2K views

The trial balance before adjustment of Crane Company reports the following balances: Cr. Dr. $100,000...

Accounting
1.2K views

Money deposited into the bank account will be: Debited in the Cash Receipts Journal...

Accounting
1.2K views

Sarasota Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units....