Green Company had the following information:
$\begin{array}{ll}
\text { Budgeted factory overhead costs }&\$144,500\
\text { Actual factory overhead costs }&\$151,980\
\text { Budgeted direct labor hours } & 34,000 \
\text { Actural direct labor hours } & 30.400
\end{array}$
Assume direct labor hours are the cost driver for factory overhead costs.The budgeted factory overhead rate is ________.
A) $4.25 per direct labor hour
B) $4.45 per direct labor hour
C) $4.63 per direct labor hour
D) $4.84 per direct labor hour

Question

Quizplus · Accepted Answer

The budgeted factory overhead rate is calculated by dividing the budgeted factory overhead costs by the budgeted direct labor hours: $144,500 / 34,000 hours = $4.25 per direct labor hour.

Green Company Had the Following Information Assume Direct Labor Hours Are the Cost Driver for Factory