Asked by David Lindsey on May 21, 2024
Verified
The predetermined overhead rate is closest to:
A) $22.76 per labor-hour
B) $11.38 per labor-hour
C) $17.74 per labor-hour
D) $8.87 per labor-hour
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours.
- Compute the predetermined overhead rate by taking into account various aspects.
Verified Answer
EA
Elizabeth AntonyMay 27, 2024
Final Answer :
D
Explanation :
Predetermined overhead rate = $266,100/30,000 labor-hours = $8.87 per labor-hour
Learning Objectives
- Compute the predetermined overhead rate by taking into account various aspects.