Bella, Inc Calculate the Predetermined Overhead Allocation Rate

question 44

Multiple Choice

Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,750. Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 44 \\\hline \text { Direct labor cost per unit } & \$ 52 & \$ 60 \\\hline \text { Number of units } & 520 & 370 \\\hline\end{array}$$ Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)

• A) 95.23%
• B) 52.29%
• C) 86.21%
• D) 1.49%