Sutherland Company Listed the Following Data for 2019 Assuming Sutherland Applied Overhead Based on Direct Labor Hours, the Budgeted

Sutherland Company listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 2,100,000 \\\text { Budgeted direct labor hours } & 89,000 \\\text { Budgeted machine hours } & 51,000 \\\text { Actual factory overhead } & 2,201,000 \\\text { Actual direct labor hours } & 83,700 \\\text { Actual machine hours } & 48,900\end{array}$ Assuming Sutherland applied overhead based on direct labor hours, the company's predetermined overhead rate for 2019 is (round to two significant digits) :

A) $23.20 per direct labor hour.
B) $23.60 per direct labor hour.
C) $22.24 per direct labor hour.
D) $22.50 per direct labor hour.
E) $22.85 per direct labor hour.

Correct Answer:

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