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Question

Jackson Inc. listed the following data for 2016:
Budgeted factory overhead$1,271,000Budgeted

direct labor hours82,000Budgeted machine hours41,000Actual factory overhead1,201,000Actual direct labor hours86,300Actual machine hours39,400Round calculations to 2 significant digits 

Assuming Jackson Inc. applied overhead based on direct labor hours, the firm’s predetermined overhead rate for 2016 is:

$14.20 per direct labor hour.

$14.38 per direct labor hour.

$15.24 per direct labor hour.

$15.50 per direct labor hour.

$15.85 per direct labor hour.

 
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