(Solved Homework): Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company bas…

Baka Corporation applies manufacturing overheed on the basits of direct labor-hours At the beginning of the most recent year,the company based s predetermined overhead rate on total estimated overheed of $240,300 and 4,690 estimated direct labor hours amounted to $243,000 and actual direct labor-hours were 4,640 Actual manufacturing overhead for the year ed overhead rate for the year was closest to

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240, 300 and 4, 690 estimated direct labor hours. Actual manufacturing overhead for the year amounted to $243,000 and actual direct labor-hours were 4, 640. The predetermined overhead rate for the year was closest to:

Expert Answer

 

Total budgeted overhead cost for the year – $240,300

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Total budgeted direct labour hours – 4,690 hours

Overhead rate per hour – 240300/4690 = $51.2367

The predetermined overhead rate for the year was closest to $51

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