Asked by Jordan Ratliff on Apr 25, 2024

The predetermined overhead rate for the Customizing Department is closest to:

A) $4.55 per direct labor-hour
B) $3.90 per direct labor-hour
C) $10.50 per direct labor-hour
D) $14.40 per direct labor-hour

Predetermined Overhead Rate

A method for distributing manufacturing overhead across production units, utilizing projected costs.

Customizing Department

A department within a company that is dedicated to modifying or adapting products or services to meet specific customer needs or requirements.

Direct Labor-Hour

A measure of the labor time spent directly on the production of goods or services, often used as a basis for allocating labor costs to products.

  • Calculate department-specific overhead rates using direct labor-hours or machine-hours as criteria.