Barr Mfg Provided the Following Information from Its Accounting Records for for 2017

question 187

Multiple Choice

Barr Mfg. provided the following information from its accounting records for 2017:
$\begin{array}{lr}\text { Expected production } & 60,000 \text { labor hours } \\\text { Actual production } & 56,000 \text { labor hours } \\\text { Budgeted overhead } & \$ 900,000 \\\text { Actual overhead } & \$ 870,000\end{array}$
How much is the overhead application rate if Barr bases the rate on direct labor hours?

• A) $16.07 per hour
• B) $15.00 per hour
• C) $14.50 per hour
• D) $15.54 per hour

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