Final Answer:
b. $35.09 per hour because The predetermined overhead rate of $35.09 per hour is calculated by dividing the estimated total manufacturing overhead costs by the estimated direct labor hours, facilitating the allocation of overhead costs to products based on actual production.
Step-by-step explanation:
The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead costs by the estimated activity level, which is often measured in terms of direct labor hours. In this case, the rate is determined by dividing the estimated total overhead costs by the estimated direct labor hours.
To find the predetermined overhead rate, we need to know the estimated total manufacturing overhead costs and the estimated direct labor hours. The correct rate is calculated as follows:
Predetermined Overhead Rate
=
Estimated Total Manufacturing Overhead Costs
Estimated Direct Labor Hours
Predetermined Overhead Rate=
Estimated Direct Labor Hours
Estimated Total Manufacturing Overhead Costs
Once the calculation is performed, the predetermined overhead rate is found to be $35.09 per hour, making the correct answer (b) $35.09 per hour. This rate is used to allocate overhead costs to products based on the actual direct labor hours incurred during production.
So the correct answer is b. $35.09 per hour