Dagger Corporation uses direct labor-hours in its predetermined overhead rate. A
ID: 2427448 • Letter: D
Question
Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $280,500. At the end of the year, actual direct labor-hours for the year were 18,000 hours, manufacturing overhead for the year was underapplied by $12,500, and the actual manufacturing overhead was $273,500. The predetermined overhead rate for the year must have been closest to:
$14.50
$15.16
$13.63
$15.44
Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $280,500. At the end of the year, actual direct labor-hours for the year were 18,000 hours, manufacturing overhead for the year was underapplied by $12,500, and the actual manufacturing overhead was $273,500. The predetermined overhead rate for the year must have been closest to:
Explanation / Answer
Answer: $14.50
Actual Manufacturing Overhead Rate $2,73,500 Less: Overhead under applied -$12,500 Applied Manufacturing Overhead $2,61,000 Total Direct Labour Hours 18000 Predetermined overhead Rate: 261000/18000 $14.50Related Questions
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