e.com/courses/28572/quiczes/264899take Question 19 4 pts Gray Company, a manufac

Question

e.com/courses/28572/quiczes/264899take Question 19 4 pts Gray Company, a manufacturing ornganization, estimates the following totals for the year 2018: Direct labor $ Direct materials Deprecistion on HQ building Insurance on manufacturing building Depreciation on manufacturing machines111.000 Indirect labor S Average direct labor wage Other factory overhead $72,000 136,000 100.000 18,000 25,000 $18/he 46,000 Gray applies overhead based on direct labor hours. What is Gray's predetermined overhead rate for $81 50/DLH $50.00/DLH $43.75/DLH

Explanation / Answer

Direct labor hours = 72000/18 = 4000 Total factory overhead = 18000+111000+25000+46000= 200000 Predetermined overhead rate = 200000/4000 =$50/ DLH Option 3 is correct

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