Chojnowski Incorporated Makes a Single Product-A Cooling Coil Used in Commercial

question 111

Multiple Choice

Chojnowski Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The predetermined overhead rate is closest to:

• A) $19.39 per labor-hour
• B) $16.34 per labor-hour
• C) $11.41 per labor-hour
• D) $9.61 per labor-hour

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