ABC Corporation uses a job-order costing system

Accounting Nov 05, 2020

ABC Corporation uses a job-order costing system. Use the following data to answer the question below: Estimated direct labor-hours....... ..25,000 Estimated manufacturing overhead costs. .$78,000 Actual direct labor-hours........ .33,000 Actual manufacturing overhead costs............ $81,000 ABC applies overhead using a predetermined rate based on direct labor-hours. What predetermined overhead rate was used? A $2.45 per direct labor-hour B $3.12 per direct labor-hour (c $0.32 per direct labor-hour D $0.41 per direct labor-hour

Expert Solution

Answer: Option B( $3.12 per direct labour hour).

predetermined overhead rate

= Estimated manufacturing overhead costs ÷ Estimated direct labour hours

=$78000 ÷ 25000

= $3.12 per direct labour hour

Thankyou.....

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