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A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours...

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Accounting

A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Level of activity 2,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 8,900
Fixed overhead cost $ 36,625

The following data pertain to operations for the most recent period:

Actual hours 3,000 DLHs
Standard hours allowed for the actual output 2,612 DLHs
Actual total variable manufacturing overhead cost $ 9,500
Actual total fixed manufacturing overhead cost $ 37,025

What is the predetermined overhead rate to the nearest cent?

$15.51.

$15.18.

$17.23.

$16.86.

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