Thursday, April 12, 2012

Kelvin Aerospace, Inc., manufactures parts such as rudder hinges for the aerospace industry


Kelvin Aerospace, Inc., manufactures parts such as rudder hinges for the aerospace industry. The company uses a job-order costing system with a predetermined plantwide overhead rate based on direct labor-hours. On December 16, 2008, the company's controller made a preliminary estimate of the predetermined overhead rate for the year 2009. The new rate was based on the estimated total manufacturing overhead cost of $3,402,000 and the estimated 63,000 total direct labor-hours for 2009:

Predetermined overhead rate =3,402,000
63,000 hours
= $54 per direct labor – hour

AND SO ON

Click here for the SOLUTION