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jok3333 [9.3K]
3 years ago
11

Zanny Moldings has the following estimated costs for the upcoming year:

Business
1 answer:
Sloan [31]3 years ago
5 0

Answer:

D) $31.

Explanation:

The computation of the predetermined overhead rate is shown below:  

Predetermined overhead rate = Estimated manufacturing overhead ÷ estimated direct labor hours

where,

Estimated manufacturing overhead is

= Salary of factory supervisor + Heating and lighting costs for factory + Depreciation on factory equipment

= $37,600 + $22,000 + $5,600

= $65,200

And, the direct labor hours is 2,100

So, the predetermined overhead rate is

= $65,200 ÷ 2,100

= $31

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