Modiste,Inc Calculate the Predetermined Overhead Allocation Rate

question 36

Multiple Choice

Modiste,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 $26,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 32 & \$ 45 \\\hline \text { Direct labor cost per unit } & \$ 55 & \$ 63 \\\hline \text { Number of units } & 510 & 390 \\\hline\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)

• A) 92.69%
• B) 49.41%
• C) 94.50%
• D) 1.58%