The following information pertains to Whitestone Industries for 2018: $\begin{array}{lr}
\text { Estimated total overhead costs for } 2018 & \$ 37,500 \
\text { Estimated direct labor costs for } 2018 & 25,000 \
\text { Actual direct labor costs } & 22,500 \
\text { Actual overhead costs } & 36,000 \
\text { Activity base } & \text { Direct labor costs }
\end{array}$
What is the predetermined overhead rate for Whitestone Industries for 2018?
A)66.7%
B)150%
C)160%
D)62.5%

Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the estimated total overhead costs by the estimated direct labor costs: $ \$37,500 / \$25,000 = 1.5 $ or 150%.

The Following Information Pertains to Whitestone Industries for 2018 What Is the Predetermined Overhead Rate for Whitestone Industries for