What should cucinelli predetermined overhead rate be

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Problem 1: Cucinelli is a custom guitar maker and estimates that their total manufacturing overhead for the upcoming year will be $600,000. Their biggest driver of overhead costs is their materials cost. They also estimate that they will incur 100,000 direct labour hours, 50,000 machine hours, and direct materials costs of $250,000. Given this information, what should Cucinelli's predetermined overhead rate be?

A. 41.7% of direct materials cost.

B. $0.17 per direct labour hour.

C. $6.00 per direct labour hour.

D. $12.00 per machine hour.

E. 240% of direct materials cost

Reference no: EM132999263

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