Dubois Decors is an interior decorator in St. Louis, Missouri. The following costs were incurred...
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Accounting
Dubois Decors is an interior decorator in St. Louis, Missouri. The following costs were incurred in the firms contract to redecorate a corporate CEOs office.
Direct material used
$
35,000
Direct professional labor
$
60,000
The firms budget for the year included the following estimates:
Budgeted overhead
$
400,000
Budgeted direct professional labor
$
250,000
Overhead is applied to contracts using a predetermined overhead rate calculated annually. The rate is based on direct professional labor cost. What is the predetermined overhead rate?
a. 62.5%
b. 58.3%
c. 150%
d. 170%
e. None of these choices are correct. The correct number is: ________________
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