Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $240,850. At the end of the year, actual direct labor-hours for the year were 15,300 hours, manufacturing overhead for the year was underapplied by $15,000, and the actual manufacturing overhead was $236,850. The predetermined overhead rate for the year must have been closest to: |
$14.50
$15.44
$13.63
$15.16
A |
Actual manufacturing Overhead |
$ 236,850.00 |
B |
Under Applied overhead |
$ 15,000.00 |
C = A - B |
Overheads applied |
$ 221,850.00 |
D |
Actual Direct Labor hours |
15,300 |
E = C/D |
Predetermined Overhead rate |
$ 14.50 |
Get Answers For Free
Most questions answered within 1 hours.