Dagger Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 60

Multiple Choice

Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $423,870. At the end of the year, actual direct labor-hours for the year were 19,400 hours, manufacturing overhead for the year was underapplied by $5,650, and the actual manufacturing overhead was $418,870. The predetermined overhead rate for the year must have been closest to:

• A)$21.59
• B)$20.76
• C)$21.30
• D)$21.85

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