Answer:
$6.91 per direct labor hour
Explanation:
Given that,
Estimated direct labor = $2,640,000
Estimated direct labor hours = 220,000
Factory overhead = $1,520,000
Actual overhead costs = $1,220,000
Therefore,
Predetermined overhead rate:
= Estimated overhead cost ÷ Estimated direct labor hours
= $1,520,000 ÷ 220,000 hours
= $6.91 per direct labor hour
