Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Question

Aspen Technologies has the following budget data:  If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Quizplus · Accepted Answer

To calculate the predetermined overhead rate based on direct labor hours, we need to divide the total budgeted overhead costs ($119,025) by the total budgeted direct labor hours (9,025 hours).
 $119,025 ÷ 9,025 = $13.20 per direct labor hour 
Therefore, the predetermined overhead rate is $13.20 per direct labor hour, so the correct answer is B.

Aspen Technologies Has the Following Budget Data: If Factory