Daget Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 78

Multiple Choice

Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,560. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,480, and the actual manufacturing overhead was $360,400. The predetermined overhead rate for the year must have been closest to:

• A) $15.50 per direct labor-hour
• B) $15.37 per direct labor-hour
• C) $15.19 per direct labor-hour
• D) $15.02 per direct labor-hour

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Definitions:

Regenerate

The ability of organisms or cells to renew, restore, or grow back parts that have been lost or damaged, essential for healing and recovery.

Lysosomes

Membrane-bound organelles containing enzymes that break down and recycle cellular waste and foreign particles.

Cell Wastes

Byproducts of cellular metabolism that cells eliminate; these can include carbon dioxide, urea, and other substances harmful if accumulated.

Golgi Bodies

Cell organelles that modify, package, and sort proteins and lipids for secretion or for use within the cell.