Question

Aspen Technologies has the following budget data: Estimated direct labor hours 10,400 Estimated direct labor dollars $63,700 Estimated factory overhead costs $156,600 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a.$12.05 b.$22.59 c.$18.07 d.$15.06

Answer 1

Answer:

The correct anwer is D.

Explanation:

Giving the following information:

Estimated direct labor hours 10,400

Estimated factory overhead costs $156,600

To calculate the estimated overhead rate,  we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 156,600/10,400= $15.06 per direct labor hour.