Baka Corporation Applies Manufacturing Overhead on the Basis of Direct

question 184

Multiple Choice

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240,200 and 4,780 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,610.The predetermined overhead rate for the year was closest to:

• A) $52.49
• B) $48.46
• C) $50.25
• D) $50.63

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