Homework Answers
Estimated direct labor hour = 7,200
variable overhead rate per direct labor hour = $7.70
Estimated fixed manufacturing overhead = $139,680
Predetermined overhead rate = variable overhead rate per direct labor hour + Estimated fixed manufacturing overhead/Estimated direct labor hour
= 7.70 + 139,680/7,200
= 7.70 + 19.4
= $27.10 per direct labor hour
Fourth option is correct
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