Collins Company Uses a Job Costing System and Allocates Overhead

Collins Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 2017 is as follows: $\begin{array}{lrr}&\text { Estimated }&\text { Actual }\\\text { Manufacturing overhead } & \$ 166,500 & \$ 165,000 \\\text { Direct labour hours } & 50,000 & 60,000\end{array}$ The estimated overhead allocation rate for 2017 was:

A) $2.75
B) $3.30
C) $3.33
D) $2.76

Correct Answer:

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