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

question 149

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Dagnon Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $299,130. At the end of the year, actual direct labor-hours for the year were 17,400 hours, manufacturing overhead for the year was overapplied by $13,850, and the actual manufacturing overhead was $294,130. The predetermined overhead rate for the year must have been closest to:


Definitions:

Functional Residual Capacity (FRC)

The volume of air present in the lungs at the end of passive expiration, an important measure in pulmonary physiology.

Expiratory Reserve Volume (ERV)

The additional amount of air that can be exhaled from the lungs after a normal exhalation.

Vital Capacity (VC)

The greatest volume of air that can be expelled from the lungs after taking the deepest possible breath; an important measurement in respiratory health.

Residual Volume (RV)

The volume of air remaining in the lungs after a forceful expiration, ensuring that gas exchange can continue at all times.

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