Q-Dot Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 39

Multiple Choice

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours. It has provided the following information for the year 2014: Based on the above information, calculate Q-dot's predetermined overhead allocation rate.

• A)$5.43 per machine hour
• B)76% of direct labor cost
• C)34% of direct materials cost
• D)$20 per direct labor hour

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