What is predetermined overhead rate per direct labor hour

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Question - A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $329,400 and direct labor hours would be 45,900. Actual manufacturing overhead costs incurred were $301,200, and actual direct labor hours were 53,800. What is the predetermined overhead rate per direct labor hour?

a. $8.61

b. $5.74

c. $7.18

d. $10.76

Reference no: EM133046944

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