The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31:
$\begin{array}{lrr}
\text { Estimated factory overhead costs } & \$ 1,500,000 \
\text { Actual factory overhead costs } & \$ 1,776,400 \
\text { Estimated labor hours } & 48,000 \
\text { Actual labor hours } & 51,700 \
\text { Estimated labor costs } & \$ 756,000 \
\text { Actual labor costs } & \$ 840,125 \
\text { Estimated machine hours } & 96,000\
\text { Actual machine hours }&102,600
\end{array}$

-
What is the predetermined factory overhead rate per labor hour?
A) $29.01.
B) $31.25.
C) $37.01.
D) $34.36.

Question

The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31:
$\begin{array}{lrr}
\text { Estimated factory overhead costs } & \$  1,500,000 \
\text { Actual factory overhead costs } & \$  1,776,400 \
\text { Estimated labor hours } & 48,000 \
\text { Actual labor hours } &  51,700 \
\text { Estimated labor costs } & \$  756,000 \
\text { Actual labor costs } & \$  840,125 \
\text { Estimated machine hours } &  96,000\
\text { Actual machine hours }&102,600
\end{array}$

-
What is the predetermined factory overhead rate per labor hour?
A) $29.01.
B) $31.25.
C) $37.01.
D) $34.36.

Quizplus · Accepted Answer

The predetermined factory overhead rate is calculated by dividing the estimated factory overhead costs by the estimated labor hours: $1,500,000 / 48,000 = $31.25 per labor hour.

The Following Information Has Been Gathered for Foxmoor Industries for Its