The Predetermined Manufacturing Overhead Rate for the Year Was $14

question 112

Multiple Choice

The predetermined manufacturing overhead rate for the year was $14.00 per direct labor hour; employees were paid $17.50 per hour. If the estimated direct labor cost was $315,000, what was the estimated manufacturing overhead?

• A) $22,500.
• B) $90,000.
• C) $252,000.
• D) $393,750.

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Definitions:

Compounded Monthly

A process where interest earnings are calculated and added back to the main balance every month, aiding in the growth of the investment.

Annuity Payment

A periodic payment received from an annuity investment, typically for retirement income.

Final Payment

the last payment that completes the payoff of a loan or financial obligation.

Compounded Monthly

The method of calculating interest where the earned interest is added to the principal balance each month.