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What is predetermined overhead rate per direct labor-hour

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Reference no: EM133170090

Question - Assume that a company's total estimated fixed overhead cost for the coming year is $100,000 and its estimated variable overhead cost is $4.00 per direct labor hour. If the company estimates that it will work 40,000 direct labor hours in the coming year, what is the predetermined overhead rate per direct labor-hour?

A. $6.00 DLH

B. $2.50 DLH

C. $6.50 DLH

D. $4.00 DLH

Reference no: EM133170090

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