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Birds Inc. estimates that it will use 472 direct labor hours in July 2021 to meet production goals. Variable overhead is estimated to be $2

Birds Inc. estimates that it will use 472 direct labor hours in July 2021 to meet production goals. Variable overhead is estimated to be $2 per direct labor hour and fixed overhead is estimated to be $944. What is the predetermined overhead rate for Birds Inc.?
  • A. $4 per direct labor hour
  • B. $5 per direct labor hour
  • C. $0.25 per direct labor hour
  • D. $2 per direct labor hour

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