Question

# Daguio corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the...

Daguio corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year the total estimated manufacturing overhead was \$224,580. At the end of the year actual direct labor hours for the year were 18,200 hours manufacturing overhead for the year was under applied by 12,100, and the actual manufacturing overhead was \$219,580. The predetermined overhead rate for the year must have been closest to

• All working forms part of the answers.
 A Actual Manufacturing Overhead \$        219,580.00 B Under Applied Overhead \$           12,100.00 C = A-B Overhead applied \$        207,480.00 D Actual direct labor hours 18200 E = C/D Predetermined Overhead rate \$                   11.40 = Answer

• Answer: The predetermined overhead rate for the year must have been closest to \$ 11.40 per direct labor hours

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