Biology Forums - Study Force

Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:

Total direct labor-hours	50,000
Total fixed manufacturing overhead cost	$ 285,000
Variable manufacturing overhead per direct labor-hour	$ 3.80

Recently, Job P513 was completed with the following characteristics:

Number of units in the job	10
Total direct labor-hours	20
Direct materials	$ 710
Direct labor cost	$ 500

The predetermined overhead rate is closest to:

▸ $13.30 per direct labor-hour

▸ $3.80 per direct labor-hour

▸ $9.50 per direct labor-hour

▸ $5.70 per direct labor-hour

Content hidden