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Question - Sirmons Corporation bases its predetermined...
Sirmons Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 120,000 labor-hours. The estimated variable manufacturing overhead was $11.53 per labor-hour and the estimated total fixed manufacturing overhead was $1,665,700. The actual labor-hours for the year turned out to be 74,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:
$25.14 per labor-hour
$11.53 per labor-hour
$25.41 per labor-hour
$13.88 per labor-hour
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