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Homework answers / question archive / Dafoe Corporation uses direct labor-hours in its predetermined overhead rate
Dafoe Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $221,100. At the end of the year, the actual manufacturing overhead was $216,100, actual direct labor hours for the year were 14.000 hours, and manufacturing overhead for the year was underapplied by $1,500. The predetermined overhead rate for the year must have been closest to
15,35
16.50
15.01
13.54
Answer: 15.35
Calculations:
| Actual manufacturing overhead | $216,100 |
| (Less): Under-applied | ($1,500) |
| Appled overhead | $214,600 |
| ÷ Actual hours | 14,000 |
| = Predetermined overhead rate | $15.35 |
