Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively. Actual direct labor cost and factory overhead were $1,100,000 and $825,000, respectively. What was Meger's predetermined factory overhead rate?
A)80%
B)125%
C)75%
D)133%

Question

Quizplus · Accepted Answer

11eb16ac_e01b_3ecd_984d_fd93b71ff671_TB6154_00 $800,000/$1,000,000 = 80%

Meger Manufacturing Uses the Direct Labor Cost Method for Applying