Zercox Corporation Uses a Predetermined Rate to Apply Overhead

question 52

Multiple Choice

Zercox Corporation uses a predetermined rate to apply overhead. At the beginning of the year, Zercox estimated its overhead costs at $380,000, direct labor hours at 55,000, and machine hours at 25,000. Actual overhead costs incurred were $350,150, actual direct labor hours were 56,000, and actual machine hours were 26,000.
What is Zercox's predetermined overhead rate per machine hour? (Round the answer to two decimal places.)

• A)$6.79
• B)$14.62
• C)$14.00
• D)$15.20

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