Question 49 1 points Save An Dehner Corporation uses a job-order costing system

Question

Question 49 1 points Save An Dehner Corporation uses a job-order costing system predetermined overhead rate based on direct labor-hours. The company based its predetermined overhoad rate for tetal direet 1abor-hours Total ixed sanufacturing overhead cost Varlable sanafacturing overhead per direct labor- 196,000 3.00 Recently, Job P951 was completed with the following characteristios usber of unite is the ob Total direet labor-our Direct materiale 100 755 “.saa The predetermined overhead rate is closest to: 2.40 per direct labor hour $3.00 per direct labor-hour $8.40 per direct labor-hour $5.40 per drect labor-hour

Explanation / Answer

Total overhead=Fixed overhead+Variable overhead

=96000+(40000*3)=$216000

Hence predetermined overhead rate=($216000/40,000)

=$5.4/direct labor hour.

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