A Company Expected Its Annual Overhead Costs to Be $1500000

question 111

Multiple Choice

A company expected its annual overhead costs to be $1500000 and direct labor costs to be $1000000. Actual overhead was $1450000 and actual labor costs totaled $1100000. How much is the company's predetermined overhead rate to the nearest cent?

• A) $1.45
• B) $1.31
• C) $1.50
• D) $1.37

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