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

question 170

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 $364,140. 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 $8,060, and the actual manufacturing overhead was $359,140. The predetermined overhead rate for the year must have been closest to:

• A) $15.43 per direct labor-hour
• B) $15.30 per direct labor-hour
• C) $15.17 per direct labor-hour
• D) $14.96 per direct labor-hour

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Definitions:

Heroin

An illegal, highly addictive opioid drug derived from morphine, known for its euphoric effects but also responsible for serious health risks and addiction.

Cocaine

A powerful and illegal stimulant drug derived from the coca plant, commonly abused for its euphoric effects.

Overdose

Overdose is the ingestion or application of a substance in quantities greater than recommended, leading to serious health consequences or death.

Cocaine

A powerful and illegal stimulant drug derived from the leaves of the coca plant, used recreationally for its euphoric effects.