Doric Agricultural Corporation Uses a Predetermined Overhead Allocation Rate Based

question 122

Multiple Choice

Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost.The manufacturing overhead cost allocated during the year is $270,000.The details of production and costs incurred during the year are as follows: $\begin{array} { | l | l | } \hline \text { Actual direct materials cost } & \$ 811,500 \\\hline \text { Actual direct labor cost } & \$ 170,000 \\\hline \text { Actual overhead costs incurred } & \$ 260,000 \\\hline \text { Total direct labor hours } & \$ 580 \text { hours } \\\hline\end{array}$ What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.)

• A) 96.30%
• B) 65.38%
• C) 158.82%
• D) 33.27%

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