Question

Barr Mfg. provided the following information from its accounting records for 2017: Expected production60,000 labor hours Actual production56,000 labor hours Budgeted overhead$900,000 Actual overhead$970,000 How much is the overhead application rate if Barr bases the rate on direct labor hours?A. $15.54 per hour
B. $15.00 per hour
C. $14.50 per hour
D. $16.07 per hour

Answer 1

Answer:A - $15.00 per hour

Explanation:from the information given above, we are making use of the expected production and budgeted overhead.

= $900,000/60,000 labour hours

= $15.00 per labour hours