At the Beginning of the Year, Managers at King Industries

question 150

Multiple Choice

At the beginning of the year, managers at King Industries estimated $420,000 in manufacturing overhead, 20,000 direct labor hours and 50,000 machine hours.Actual manufacturing costs at the end of the year were $425,000 in manufacturing overhead.During the year 22,000 direct labor hours and 47,000 machine hours were incurred.If overhead is applied based on direct labor hours, what is the predetermined overhead rate for the coming year?

• A)$19.09 per direct labor hour
• B)$20.00 per direct labor hour
• C)$21.00 per direct labor hour
• D)$21.25 per direct labor hour

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