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Virty [35]
3 years ago
9

XYZ Co. is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10

,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor-hours during the period. The predetermined overhead rate is closest to: Group of answer choices
Business
1 answer:
stira [4]3 years ago
6 0

Answer:

the predetermined overhead rate is $12.10

Explanation:

The computation of the predetermined overhead rate is shown below:

The Predetermined overhead rate is

= (Estimated total fixed manufacturing overhead ÷ Estimated direct labor hours)

= ($121,000 ÷ 10,000)

= $12.10

hence, the predetermined overhead rate is $12.10

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