If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:
A)$64.04 per DLH
B)$82.13 per DLH
C)$30.64 per DLH
D)$23.50 per DLH

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $448,245 ÷ 7,000 DLHs = $64.04 per DLH (rounded)

If the Company Allocates All of Its Overhead Based on Direct