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Bronzit Company estimated the following at the beginning of the year. Assembly Testing Department Department Total Overhead $700,000 $100,000 $800,000 Direct Labor Hours 150,500 40,500
Bronzit Company estimated the following at the beginning of the year. Assembly Testing Department Department Total Overhead $700,000 $100,000 $800,000 Direct Labor Hours 150,500 40,500 191,000 Machine Hours 37,000 72,000 109,000 Bronzit uses departmental overhead rates. In the assembly department direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for the month of May is as follows: Assembly Testing Department Department Total Overhead $50,000 $11,000 $61,000 Direct Labor Hours 20,000 2,500 22,500 Machine Hours 3,500 14,000 17.500 Assembly Testing Department Department Total Overhead $50,000 $11,000 $61,000 Direct Labor Hours 20,000 2,500 22,500 Machine Hours 3,500 14,000 17,500 If Bronzit uses a plantwide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent? $8.65 per direct labor hour $5 per direct labor hour $0.33 per direct labor hour $4.19 per direct labor hour $4,50 per direct labor hour
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