Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:    Total direct labor-hours 40,000Total fixed manufacturing overhead cost$96,000Variable manufacturing overhead per direct labor-hour$3.00 Recently, Job P951 was completed with the following characteristics:    Number of units in the job 20Total direct labor-hours 100Direct materials$755Direct labor cost$4,000 The predetermined overhead rate is closest to:

A. $5.40 per direct labor-hour
B. $2.40 per direct labor-hour
C. $8.40 per direct labor-hour
D. $3.00 per direct labor-hour


Answer: A

Business

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