For the year, there are 6,000 budgeted direct labor hours. The variable overhead rate is...
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Accounting
For the year, there are 6,000 budgeted direct labor hours. The variable overhead rate is estimated to be $8/direct labor hour. Fixed manufacturing overhead is $36,000 for the year, which includes $4,000 of depreciation. What is the budgeted predetermined overhead rate?
- A. $8 per direct labor hour
- B. $13.33 per direct labor hour
- C. $14 per direct labor hour
- D. $14.67 per direct labor hour
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