Caper Manufacturing applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $153,000 and direct labor hours would be 16,000. The applied overhead rate per direct labor hour is: (Round your answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The applied overhead rate is calculated by dividing the estimated overhead costs by the estimated direct labor hours: $153,000 / 16,000 hours = $9.56 per direct labor hour.

Caper Manufacturing Applies Overhead Based on Direct Labor Hours