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bernie2981 bernie2981
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Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

Estimated direct labor cost   $500,000
Actual direct labor cost   $465,000
Estimated manufacturing overhead costs   $425,000
Actual manufacturing overhead costs   $350,000
Estimated direct labor hours   250,000
Actual direct labor hours   232,000

If Federer Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be?
A) $1.40 per direct labor hour
B) $1.83 per direct labor hour
C) $1.70 per direct labor hour
D) $1.51 per direct labor hour
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Managerial Accounting

Managerial Accounting


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nucleinuclei
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bernie2981 Author
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#2
8 years ago
Answers my question perfectly.
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