Krier Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $738,000 and 30,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $792,000 and 31,500 total direct labor-hours during the period. The predetermined overhead rate is closest to:

A. $24.60
B. $25.14
C. $23.43
D. $26.40


Answer: A

Business

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