Jackson Inc. listed the following data for 2016: Budgeted factory overhead Budge

Question

Jackson Inc. listed the following data for 2016: Budgeted factory overhead Budgeted direct labor hours Budgeted machine hours Actual factory overhead Actual direct labor hours Actual machine hours Round calculations to 2 significant digits $1,271,000 82,000 41,000 1,201,000 86,300 39,400 Assuming Jackson Inc. applied overhead based on direct labor hours, the fim's predetermined overhead rate for 2016 is O $14.20 per direct labor hour. $14.38 per direct labor hour. O $15.24 per direct labor hour. O $15.50 per direct labor hour o $15.85 per direct labor hour.

Explanation / Answer

Answer is $15.50 per direct labor hour

Budgeted factory overhead = $1,271,000
Budgeted direct labor hours = 82,000

Predetermined overhead rate = Budgeted factory overhead / Budgeted direct labor hours
Predetermined overhead rate = $1,271,000 / 82,000
Predetermined overhead rate = $15.50 per direct labor hour

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.