Purves Corporation Is Using a Predetermined Overhead Rate That Was

question 126

Multiple Choice

Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor-hours during the period. The predetermined overhead rate is closest to:

• A) $10.37
• B) $12.10
• C) $11.10
• D) $11.30

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