Question
Daget Corporation uses direct labor hours at its default overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,980. At
Daget Corporation uses direct labor hours at its default overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,980. At the end of the year, the actual direct labor hours for the year were 24,000 hours, the manufacturing overhead for the year was overapplied by $8 900 and actual manufacturing overhead costs were $361,660.
What would be the default overhead rate for the year?
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Accounting What the Numbers Mean
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