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Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is
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Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate.

a. 2.08
b. 4.08
c. 8.08
d. None of the given answers e. 5.08​

User Vishal
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2 Answers

20 votes
20 votes

Answer:

Explanation:b

User NightWatcher
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10 votes
10 votes

Answer:

A

Step-by-step explanation:

User Popoy
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