A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 8,000DLHsOverhead costs at the denominator activity level: Variable overhead cost$56,400 Fixed overhead cost$100,800 ?The following data pertain to operations for the most recent period: Actual hours 7,800DLHsStandard hours allowed for the actual output 7,735DLHsActual total variable manufacturing overhead cost$54,210 Actual total fixed manufacturing overhead cost$100,200 ?What is the predetermined overhead rate to the nearest cent?
A. $20.15 per DLH
B. $19.80 per DLH
C. $19.30 per DLH
D. $19.65 per DLH
Answer: D
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