The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for February should be:

A) $3.40 per direct labor-hour
B) $21.10 per direct labor-hour
C) $17.70 per direct labor-hour
D) $18.80 per direct labor-hour

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the year begins based on estimated costs and activity levels.

Direct Labor-hour

A measure of the work time involved in producing goods, usually expressed in hours, directly tied to the labor cost of manufacturing.