Figure 5-1

question 18

Multiple Choice

Figure 5-1. Morrow Company applies overhead based on direct labor hours.At the beginning of the year,Morrow estimates overhead to be $620,000,machine hours to be 180,000,and direct labor hours to be 40,000.During February,Morrow has 4,200 direct labor hours and 8,000 machine hours.
Refer to Figure 5-1.What is the predetermined overhead rate?

• A)$3.44 per machine hour
• B)$147.62 per direct labor hour
• C)$15.50 per direct labor hour
• D)$77.50 per machine hour
• E)none of these are correct

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