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Find the predetermined overhead rate for August

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Question - The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7100 direct labor-hours will be required in August. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $132,770 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company re-computes its predetermined overhead rate every month. Find the predetermined overhead rate for August?

Reference no: EM132842838

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