Reference no: EM132663295
The following cost data pertains to GHI Inc. for December 31st, 2019:
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Beginning Work-in-Process:
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$20,000
|
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Ending Work-in-Process:
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$10,000
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Direct Materials Used:
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$40,000
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Direct Costs Incurred in Production:
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$60,000
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Actual Indirect costs incurred in Production:
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$76,000
($36,000 of which is
fixed)
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Beginning Finished Goods Inventories:
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$80,000
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Ending Finished Goods Inventories:
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$40,000
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Problem 1: During the period, GHI employees worked a total of 8,000 direct labour hours: GHI uses ajob-order costing system and applies overhead costs using direct labour hours. What was GHI's predetermined overhead rate (POHR)?
Multiple Choice
Option 1: $4 per direct labour hour
Option 2: $4.50 per direct labour hour
Option 3: $5 per direct labour hour
Option 4: $4.67 per direct labour hour