Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 62,000 labor-hours. The estimated variable manufacturing overhead was $2.88 per labor-hour and the estimated total fixed manufacturing overhead was $1,792,360. The actual labor-hours for the year turned out to be 62,500 labor-hours. What was the predetermined overhead rate for the recently completed year closest to?

Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 62,000 labor-hours. The estimated variable manufacturing overhead was $2.88 per labor-hour and the estimated total fixed manufacturing overhead was $1,792,360. The actual labor-hours for the year turned out to be 62,500 labor-hours. What was the predetermined overhead rate for the recently completed year closest to?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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