In: Accounting
Arless inc uses a predetermined rate to apply manufacturing overhead to products based on direct labor dollars. Actual manufacturing overhead for the year was $2,000,000 and the direct labor dollar cost was 400,000. if the overhead was underapplied by 200,000 the estimated predetermined overhead rate was
a. 3.00 per direct labor dollar
b. 4.5 per direct labor dollar c
. not enough information
d. 5.00 per direct labor dollar