Krier Corporation Uses a Predetermined Overhead Rate That Was Based

question 5

Multiple Choice

Krier Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $738,000 and 30,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $792,000 and 31,500 total direct labor-hours during the period.The predetermined overhead rate is closest to:

• A) $26.40
• B) $25.14
• C) $23.43
• D) $24.60