The following information is provided by the Salinger Corporation for the year: $\begin{array}{lr}
\text { Actual direct labor hours worked } & 62,100 \
\text { Budgeted overhead } & \$ 405,000 \
\text { Budgeted direct labor hours } & 50,500 \
\text { Actual overhead costs incurred } & \$ 621,000
\end{array}$ Which of the following is the predetermined overhead rate, if calculated using direct labor hours? (Round the answer to two decimal places.)
A)$1.53
B)$6.52
C)$8.02
D)$12.30

Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the budgeted overhead by the budgeted direct labor hours. In this case, the predetermined overhead rate is $405,000 / 50,500 = $8.02 per direct labor hour.

The Following Information Is Provided by the Salinger Corporation for the Year