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6. A company uses direct labor hours as the allocation base for its predetermined overhead rate. At the beginning of the year, it was estimated
6. A company uses direct labor hours as the allocation base for its predetermined overhead rate. At the beginning of the year, it was estimated that 38,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $578,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor hour. What is the pre-determined overhead rate? A. $18.21 B. $15.21 C. $192,666 D. $3
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