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What would the predetermined manufacturing overhead rate

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Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

Actual direct labor hours 232,000

Estimated direct labor hours 250,000

Actual manufacturing overhead costs $350,000

Estimated manufacturing overhead costs $400,000

Actual direct labor cost $465,000

Estimated direct labor cost $500,000

If Nadal Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

Reference no: EM131807893

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