The following information has been gathered for Roswell Machining for its fiscal year ending December 31: What is the predetermined factory overhead rate per labor hour?
A)$29.01.
B)$31.25.
C)$37.01.
D)$34.36.

Question

The following information has been gathered for Roswell Machining for its fiscal year ending December 31:  What is the predetermined factory overhead rate per labor hour?
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 total estimated factory overhead costs by the total estimated direct labor hours:
$116,500 ÷ 3,728 = $31.25. Therefore, the correct answer is B.

The Following Information Has Been Gathered for Roswell Machining for Its