Answer:
Step-by-step explanation:
Factory overhead could be defined as the total amount incurred in production excluding direct labor or material cost. They are expenses which cannot be traced directly to a product.
Calculating factory overhead based on direct labor hours:
Budgeted factory overhead = $4,958,800
Budgeted direct labor hours = 322,000
Factory overhead rate = (Budgeted factory overhead ÷ Budgeted direct labor hours)
Factory overhead rate = 4,958,800 ÷ 322,000
= $15.4