Predetermined overhead rate for the year
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Question 2:
Daffe Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $164,800. At the end of the year, actual direct labor-hours for the year were 12,500 hours, manufacturing overhead for the year was overapplied by $10,550, and the actual manufacturing overhead was $160,000. The predetermined overhead rate for the year must have been closest to:
$14.49
$14.89
$13.64
$13.36
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The solution examines the predetermined overhead rate for the years.
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