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The budgeted factory overhead cost is $460,000, the budgeted direct labor hours 80,000, and the actual direct labor hours is 6,700 for the month. What is the Single Plantwide Factory Overhead Rate, if the allocation is based on direct labor hours?

Select one:

a. $65.00 per direct labor hour

b. $68.65 per direct labor hour

c. $5.35 per direct labor hour

d. $5.75 per direct labor hour

Respuesta :

Officialalehpeter

Answer:

b. $68.65 per direct labor hour

Explanation:

Allocating based on direct labor hours, divide the total budgeted overhead cost with the actual labor cost.

$460,000/6700 hours

$68.65/hour

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