Calculate the predetermined overhead rate

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Question - Below is information from the budget of the J. Turner Inc at the beginning of the current year

Estimated factory overhead $100,000

Estimated direct labor hours 60,000 hours

Estimated machine hours 41,250 hours

Estimated direct labor cost 825,000

Actual factory overhead incurred during the year 144,000

Calculate the predetermined overhead rate if the company uses the following as a basis:

(a) Direct labor hours. (Hint: The POHR for this item should be greater than $1.00 but less than $2.00 per DLH).

(b) Direct labor cost.

(c) Machine hours.

Reference no: EM132161363

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