Duran Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 99

Multiple Choice

Duran Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year, actual direct labor-hours for the year were 18,200 hours, manufacturing overhead for the year was underapplied by $12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been closest to:

• A) $11.40.
• B) $12.34.
• C) $12.06.
• D) $10.53.

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Definitions:

Preferred Provider Organization

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