Question

Bernard​ Company's budgeted manufacturing overhead is $ 2 comma 700 comma 000. Overhead is allocated on the basis of direct labor hours. The budgeted direct labor hours for the period are 60 comma 000. What is the manufacturing overhead​ rate? A. $ 4 B. $ 27 C. $ 49 D. $ 45

Answer 1

D. $ 45

Step-by-step explanation:

According to data given in question:

Bernard​ Company's budgeted manufacturing overhead = $2,700,000

Direct labor hours for the period = 60,000 hours

As Overhead is allocated on the basis of direct labor hours.

Manufacturing overhead​ rate = $2,700,000 / 60,000 hours

Manufacturing overhead​ rate = $45 / hour

So the correct Answer is D. $ 45