Use the Budget Data Shown Below for Sharp Company to Answer

question 102

Multiple Choice

Use the budget data shown below for Sharp Company to answer the questions that follow:
$$\begin{array} { l r } \text { Estimated direct labor hours } & 12,000 \\\text { Estimated direct labor dollars } & \$ 90,000 \\\text { Estimated factory overhead costs } & \$ 179,000 \\\text { Actual direct labor hours } & 11,500 \\\text { Actual direct labor dollars } & \$ 92,000 \\\text { Actual factory overhead costs } & \$ 180,000\end{array}$$
-A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

• A) $12.00
• B) $10.00
• C) $12.57
• D) $10.48

---

Definitions:

Informal Support

Assistance and resources provided by non-professional networks, such as family, friends, or community members, rather than through formal services or institutions.

Neighborhood Carpool

An arrangement among a group of people to share car rides to and from work, school, or other destinations to save on transportation costs.

Curriculum Inclusion

The practice of integrating students of all abilities and backgrounds into the general education curriculum.

Family Members

Individuals related by blood, marriage, or adoption who typically live together or have strong emotional bonds.