Answer:
The predetermined plantwide overhead rate for the period is closest to:____.
$6.02
Explanation:
a) Data and Calculations:
Estimated fixed manufacturing overhead = $221,000
Estimated variable manufacturing overhead = $2.00 per DLH
Actual manufacturing overhead for the period = $320,000
Actual direct labor-hours worked = 54,000 hours
Estimated direct labor-hours to be worked in the coming period = 55,000 hours.
Predetermined plantwide overhead rate:
Estimated fixed manufacturing overhead = $221,000
Estimated variable manufacturing overhead = 110,000 ($2.00 * 55,000)
Total estimated manufacturing overhead = $331,000
Predetermined rate = $331,000/55,000 = $6.02 per DLH
