Reference: 07-15
Jimbob Co Variable Manufacturing Overhead Is Applied Using Direct Labour Hours at \begin{array}

Reference: 07-15
Jimbob Co. has budgeted direct labour-hours as follows: $$\begin{array} { | l | l | } \hline \text { Quarter } & \text { Hours } \\\hline 1 & 11,000 \\\hline 2 & 12,000 \\\hline 3 & 10,000 \\\hline 4 & \underline { 11,000 } \\\hline \text { Year } & \underline { \underline { 44,000 } } \\\hline\end{array}$$ Variable manufacturing overhead is applied using direct labour hours at a rate of $3.00 per DLH. Fixed manufacturing overhead is budgeted at $30,000 per quarter which includes $8,000 in depreciation expense.
-What is the predetermined overhead rate per DLH for the year (rounded to nearest cent)

A) $5.73.
B) $5.00.
C) $6.00.
D) $5.27.

Correct Answer:

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