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DynaMore Applies Overhead to Each Window Cleaning Job It Provides

Question 97

Multiple Choice

DynaMore applies overhead to each window cleaning job it provides to customers based on direct labor hours.Information concerning manufacturing overhead and labor for July follows:  Estimated direct labor 5,000 hours @$14.20=$71,000 Direct labor incurred 5,100 hours @$14.50=$73,950 Estimated manufacturing overhead $269,800 Actual manufacturing overhead $281,400\begin{array}{lr}\text { Estimated direct labor } & 5,000 \text { hours } @ \$ 14.20=\$ 71,000 \\\text { Direct labor incurred } & 5,100 \text { hours } @ \$ 14.50=\$ 73,950 \\\text { Estimated manufacturing overhead } & \$ 269,800 \\\text { Actual manufacturing overhead } & \$ 281,400\end{array} How much is the predetermined overhead rate?


A) $3.80
B) $3.65
C) $53.96
D) $52.90

Correct Answer:

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