The Predetermined Overhead Rate for Manufacturing Overhead for Ashland Corporation

question 46

Multiple Choice

The predetermined overhead rate for manufacturing overhead for Ashland Corporation was $8.00 per direct labor hour. The estimated labor rate was $10.00 per hour. If the estimated direct labor cost was $150,000, what was the estimated manufacturing overhead?

• A) $93,750.
• B) $75,000.
• C) $120,000.
• D) $15,000.

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Definitions:

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