Pearl Inc. incurred overhead costs of $65,000 in May, 2014. The overhead applied on the basis of
Question:
Pearl Inc. incurred overhead costs of $65,000 in May, 2014. The overhead applied on the basis of direct labor hours for May was $90,000. The company worked for 500 hours in the month. Compute the predetermined overhead rate per direct labor hour?
1. $130 per direct labor hour
2. $180 per direct labor hour
3. $1.38 per direct labor hour
4. $500 per direct labor hour
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Related Book For 
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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