Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the labor-hours for the upcoming year at 52,000 labor-hours.The estimated variable manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was $1,192,360.The actual labor-hours for the year turned out to be 52,600 labor-hours.The predetermined overhead rate for the recently completed year was closest to:
A)$2.78
B)$25.45
C)$25.71
D)$22.93

Question

Quizplus · Accepted Answer

Estimated total manufacturing overhead = $1,192,360 + ($2.78 per labor-hour F1F1F1S1F1F1F10 52,000 labor-hours)= $1,336,920
Predetermined overhead rate = $1,336,920 F1F1F1S1F1F1F10 52,000 labor-hours = $25.71 per labor-hour

Capalbo Corporation Bases Its Predetermined Overhead Rate on the Estimated