Furtado Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:  Total budgeted manufacturing overhead$191,940 Budgeted hours 21,000labor-hours    Actual production (a) 35,000unitsStandard hours per unit (b) 0.70labor-hoursStandard hours allowed for the actual production (a) × (b) 24,500labor-hours    Total actual manufacturing overhead$190,874 Actual hours 23,200labor-hours?The predetermined overhead rate is closest to:

A. $5.45 per labor-hour
B. $7.79 per labor-hour
C. $6.40 per labor-hour
D. $9.14 per labor-hour


Answer: D

Business

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