Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,00
0 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period. At the end of the period, the records show that there had been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.) A) $5.17 per direct labor hour.
B) $7.00 per direct labor hour.
C) $6.42 per direct labor hour.
D) $5.84 per direct labor hour.
E) $6.25 per direct labor hour.
This type of flexible work arrangement is known as SHIFT. In shift arrangement, the hours in the days are often divided equally into night and day sections, which are handle by different employees. Sometimes, a day work may be divided into three shift depending on the policies of the concerned company.
