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Aspen Technologies has the following budget data: Estimated direct labor hours 15,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

a. $2.20 b. $16.50 c. $13.20 d. $7.50?

Respuesta :

hyderali230

Answer:

c. $13.20

Explanation:

Estimated factory overhead costs = $198,000

Estimated direct labor hours = 15,000 hours

Predetermined Overhead rate = Estimated factory overhead costs / Estimated direct labor hours

Predetermined Overhead rate = $198,000 / 15000 hours

Predetermined Overhead rate = $13.2 per labor hour

So, the correct option is  c. $13.20

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