National Production Company applies manufacturing overhead based on direct labor cost.Information concerning manufacturing overhead and labor for August follows: $\begin{array}{lrr}&\text { Estimated }&\text { Actual }\
\text { Overhead cost } & \$ 174,000 & \$ 171,100 \
\text { Direct labor hours } & 5,800 & 5,900 \
\text { Direct labor cost } & \$ 87,000 & \$ 89,975
\end{array}$ How much is the predetermined overhead rate?

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The Answer of National Production Company applies manufacturing overhead based on direct labor cost.Information concerning manufacturing overhead and labor for August follows: $\begin{array}{lrr}&\text { Estimated }&\text { Actual }\
\text { Overhead cost } & \$ 174,000 & \$ 171,100 \
\text { Direct labor hours } & 5,800 & 5,900 \
\text { Direct labor cost } & \$ 87,000 & \$ 89,975
\end{array}$ How much is the predetermined overhead rate?

National Production Company Applies Manufacturing Overhead Based on Direct Labor