Question

Crane Company provided the following information from its accounting records for 2019.

Answer 1

Answer:

$10.00 per hour

Step-by-step explanation:

Overhead application rate which is also known as overhead absorption rate on the basis on labor hours is the total budgeted overhead  for 2019 which is $900,000 divided by the expected production of 90,000 labor hours for the year.

overhead application rate=$900,000/90,000=$10 per hour

This implies that for every one hour worked overhead cost of $10 would be added to the other costs incurred.

The correct option then is the third option of $10.00 per hour