Predetermined Factory Overhead Rate

Since the Company is more reliant on labor than machines, Marie decides to use direct labor hours (DHL) as the activity base for her predetermined factory overhead rathe, rather than machine hours (MH).

Estimated Selected Amounts for the Year

Est. depreciation on equipment	$1,200
Est. total Office Manager/Knitting Supervisor wages	$42,000
Est. office utilities	$3,000
Est. factory utilities	$4,800
Est. factory rent	$12,000

Activity Base Data

Est. number of DHL for the year	5,000
Est. number of MH for the year	3,500

Calculate the predetermined factory overhead rate for the current year.

A.11.14 per DHL

B.12.60 per DHL

C.7.80 per DHL

D.12.00 per DHL

E.Another Amt per DHL