Aspen Technologies has the following budget data:
If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Question

Aspen Technologies has the following budget data: ​
 If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Quizplus · Accepted Answer

To find the predetermined overhead rate, we need to divide the total budgeted factory overhead cost by the total budgeted direct labor hours. 
Predetermined overhead rate = Total budgeted factory overhead cost / Total budgeted direct labor hours 
= $264,000 / 20,000 hours 
= $13.20 per direct labor hour 
Therefore, the answer is B) $13.20.

Aspen Technologies Has the Following Budget Data: ​

Aspen Technologies Has the Following Budget Data: