Baka Corporation Applies Manufacturing Overhead on the Basis of Direct

question 51

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 $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
-The predetermined overhead rate for the year was closest to:

• A) $52.61
• B) $49.91
• C) $51.00
• D) $51.49

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