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Hudson Automotive uses labor-hours as its base for calculating a predetermined overhead rate. Hudson had estimated the labor-hours for the year at 46,000 labor-hours. The
Hudson Automotive uses labor-hours as its base for calculating a predetermined overhead rate. Hudson had estimated the labor-hours for the year at 46,000 labor-hours. The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260. The actual labor-hours for the year turned out to be 41,200. What was the predetermined overhead rate?
a. $6.25
b. $22.31
c. $31.16
d. $28.56
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