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Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,380. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,300, and the actual manufacturing overhead was $359,860.

The predetermined overhead rate for the year must have been closest to:

Respuesta :

Answer:

$15.34

Explanation:

The formula and the computation of the predetermined overhead rate is shown be

Predeterminer overhead rate = Manufacturing overhead ÷ direct labor hours

where,

Manufacturing overhead is

= $359,860 + $8,300

= $368,160

And, the direct labor hours is 24,000

So, the predetermined overhead rate is

= $368,160 ÷ 24,000

= $15.34

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