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Q-Dot Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

Question 150

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Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours.It has provided the following information for the year:  Manufacturing overhead costs allocated to production $189,000 Actual direct materials cost $540,000 Actual direct labor cost $2,450,000 Actual direct labor hours 9400 direct labor hours  Estimated machine hours 180,000 machine hours \begin{array} { | l | l | } \hline \text { Manufacturing overhead costs allocated to production } & \$ 189,000 \\\hline \text { Actual direct materials cost } & \$ 540,000 \\\hline \text { Actual direct labor cost } & \$ 2,450,000 \\\hline \text { Actual direct labor hours } & 9400 \text { direct labor hours } \\\hline \text { Estimated machine hours } & 180,000 \text { machine hours } \\\hline\end{array} Based on the above information,calculate Q-dot's predetermined overhead allocation rate.(Round your answer to two decimal places.)


A) $1.05 per machine hour
B) 7.71% of direct labor cost
C) 35.00% of direct materials cost
D) $20.11 per direct labor hour

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