What would the predetermined manufacturing overhead rate? be

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Healthy Food Company is considering 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 $500,600
Actual direct labor cost $465,800
Estimated manufacturing overhead costs $425,800
Actual manufacturing overhead costs $350,300
Estimated direct labor hours 253,800
Actual direct labor hours 238,000

Problem 1: What would the predetermined manufacturing overhead rate? be, if Healthy Food Company uses direct labor hours as the allocation base?? ?(Round your answer to the nearest? cent.)

A. $1.79 per direct labor hour
B. $1.47 per direct labor hour
C. $1.68 per direct labor hour
D. $1.38 per direct labor hour

Reference no: EM132994602

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