Q 37

Longobardi 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 Corporation estimated the labor-hours for the upcoming year at 46,000 labor-hours.The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260.The actual labor-hours for the year turned out to be 41,200 labor-hours.The predetermined overhead rate for the recently completed year was closest to: A)$28.56 per labor-hour B)$22.31 per labor-hour C)$6.25 per labor-hour D)$31.16 per labor-hour

Multiple Choice