35. Aspen Technologies has the following budget data: Estimated direct labor hours Estimated direct labor dollars...

35. Aspen Technologies has the following budget data: Estimated direct labor hours Estimated direct labor dollars Estimated factory overhead costs 15.000 $90,000 $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined overheadrateis

If factory overhead is to be applied based on direct labour hours, the predetermined overhead rate is:

a. $7.50

b. $13.20

c. $2.20

d. $16.50

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Expert Solution

Predetermined overhead rate = Total overheads cost/ no of direct labour hours

Factory overheads = $198,000

No of hours of direct labour = 15,000

Overheads rate = $198,000/15,000 = $13.20

Ans) predetermined overhead rate = $13.2

ekkarill92 answered 2 years ago

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