Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for October should be:

A) $4.60 per direct labor-hour
B) $21.50 per direct labor-hour
C) $20.30 per direct labor-hour
D) $16.90 per direct labor-hour

Correct Answer:

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