Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.
-The predetermined overhead rate for the year was closest to:

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total direct labor-hours
= $77,250 F1F1F1S1F1F1F10 2,500 direct labor-hours
= $30.90 per direct labor-hour

Bakker Corporation Applies Manufacturing Overhead on the Basis of Direct