Dawn Manufacturing applies manufacturing overhead at a rate of $40 per direct labor hour. a. When during

Question:

Dawn Manufacturing applies manufacturing overhead at a rate of $40 per direct labor hour.
a. When during the year was this rate computed?
b. Describe briefly how this rate was computed.
c. Identify the shortcomings of this rate that will cause overhead applied during the period to differ from the actual overhead costs incurred during the period.