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Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $248,800. At the
Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $248,800. At the end of the year, actual direct labor-hours for the year were 16,800 hours, manufacturing overhead for the year was underapplied by $17,000, and the actual manufacturing overhead was $243,800. The predetermined overhead rate for the year must have been:
$14.44 per direct labor-hour
$12.63 per direct labor-hour
$14.16 per direct labor-hour
$13.50 per direct labor-hour
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