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Actual production
Budgeted overhead
Actual overhead
56,000 labor hours
$900,000
$870,000
How much is the overhead application rate if Barr bases the rate on
direct labor hours?
$15.00 per hour
$16.07 per hour
$15.54 per hour
$14.50 per hour
Multiple Choice Question 94
If annual overhead costs are expected to be $750,000 and direct labor
costs are expected to be $1,000,000, then if the activity base is direct
labor costs:
$1.33 is the predetermined overhead rate.
for every dollar of manufacturing overhead, 75 cents of direct labor will
be assigned.
a predetermined overhead rate cannot be determined.
for every dollar of direct labor, 75 cents of manufacturing overhead will
be assigned.