Sutherland Company listed the following data for 2010:
Assuming Sutherland applied overhead based on direct labor hours,the company's predetermined overhead rate for 2010 is (round to two significant digits):

Question

Sutherland Company listed the following data for 2010: 
Assuming Sutherland applied overhead based on direct labor hours,the company's predetermined overhead rate for 2010 is (round to two significant digits):

Quizplus · Accepted Answer

To calculate the predetermined overhead rate, we need to divide the estimated total manufacturing overhead by the estimated total direct labor hours.
From the given data, we have:
Estimated total manufacturing overhead = $288,000
Estimated total direct labor hours = 12,200 hours
Predetermined overhead rate = $288,000 / 12,200 hours = $23.60 per direct labor hour. 
Therefore, the correct answer is B.

Sutherland Company Listed the Following Data for 2010