Save Question 15 (of 25) Time remain 15 ints 12.00 points MC Qu. 133 The manufac

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Save Question 15 (of 25) Time remain 15 ints 12.00 points MC Qu. 133 The manufacturing overhead budget at Cardera Corporatio... The manufacturing overhead budget at Cardera Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,500 direct labor hours will be required in January The variable overhead rate is $8 90 per direct labor-hour. The company's budgeted fixed manufactuning overhead is $110.250 per month, which includes depreciation of $18,040 All other fixed manufacturing overhead costs represent current cash flows The company recomputes its predetermined overhead rate every month The predetermined overhead rate for January should be O $21.30 per direct labor hour $2360 per direct labor-hour 0 S890 per direct labor-hour $14.70 per direct labor hour References

Explanation / Answer

Answer is $23.60 per direct labor hour

Particulars Amt Variable Overhead (7500 x 8.90)          66,750.00 Fixed Overhead        110,250.00 Total Overhead (A)        177,000.00 No of Hours (B)            7,500.00 Predetermined overhead rate (A/B)                  23.60

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