Dafoe Corporation uses direct labor-hours in its predetermined overhead rate

Accounting Feb 16, 2022

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

Expert Solution

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

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