The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31: What is the predetermined factory overhead rate per labor hour?
$$\begin{array} { | l | r | }
\hline \text { Estimated factory ouerhead costs } & \$ 1,500,000 \
\hline \text { Actual factory overhead costs } & \$ 1,776,400 \
\hline \text { Estimated labor hours } & 48,000 \
\hline \text { Actual labor hours } & 51,700 \
\hline \text { Estimated labor costs } & \$ 756,000 \
\hline \text { Actual labor costs } & \$ 840,125 \
\hline \text { Estimated machine hours } & 96,000 \
\hline \text { Actual machine hours } & 102,600 \
\hline
\end{array}$$
A) $29.01.
B) $31.25.
C) $37.01.
D) $34.36.

Question

The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31: What is the predetermined factory overhead rate per labor hour?
$$\begin{array} { | l | r | } 
\hline \text { Estimated factory ouerhead costs } & \$ 1,500,000 \
\hline \text { Actual factory overhead costs } & \$ 1,776,400 \
\hline \text { Estimated labor hours } & 48,000 \
\hline \text { Actual labor hours } & 51,700 \
\hline \text { Estimated labor costs } & \$ 756,000 \
\hline \text { Actual labor costs } & \$ 840,125 \
\hline \text { Estimated machine hours } & 96,000 \
\hline \text { Actual machine hours } & 102,600 \
\hline
\end{array}$$
A) $29.01.
B) $31.25.
C) $37.01.
D) $34.36.

Quizplus · Accepted Answer

To calculate the predetermined factory overhead rate per labor hour, we need to divide the estimated total factory overhead costs by the estimated total direct labor hours. 
$93,000 (estimated total factory overhead costs) / 3,000 (estimated total direct labor hours) = $31.25 per labor hour. Therefore, the answer is B.

The Following Information Has Been Gathered for Foxmoor Industries for Its