Trisdale,Inc. ,manufactures and sells two products: Product V5 and Product X3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The company's total manufacturing overhead is $372,695.If the company allocates all of its overhead based on direct labor-hours,the predetermined overhead rate would be closest to:
A)$24.95 per DLH
B)$49.69 per DLH
C)$90.88 per DLH
D)$19.67 per DLH

Question

Trisdale,Inc. ,manufactures and sells two products: Product V5 and Product X3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The company's total manufacturing overhead is $372,695.If the company allocates all of its overhead based on direct labor-hours,the predetermined overhead rate would be closest to:
A)$24.95 per DLH 
B)$49.69 per DLH 
C)$90.88 per DLH 
D)$19.67 per DLH

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $372,695 ÷ 7,500 DLHs = $49.69 per DLH (rounded)