Answer:
$27.20
Explanation:
The computation of the predetermined overhead rate is shown below:
= Variable overhead rate per hour + Fixed Overhead rate per hour
where,
Variable overhead rate per hour is $9.50
And, the fixed overhead rate per hours is
= budgeted fixed manufacturing overhead ÷ direct labor hours
= $130,980 ÷ 7,400
= $17.70
So, the predetermined overhead rate is
= $9.50 + $17.70
= $27.20
By adding the variable overhead rate per hour and the fixed overhead rate per hour we can find out the predetermined overhead rate
Explanation:
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Mandatory spending is something that either has, or is strongly urged to be done. Discretionary spending is based on the spenders discretion, if the spender thinks it needs to be spent, then they would do so. Example of mandatory spending would be paying back a loan. Example of discretionary spending would be a good business investment. Hope this helps!
