The predetermined overhead rate is closest to:

A) $6.40 per labor-hour
B) $7.79 per labor-hour
C) $5.45 per labor-hour
D) $9.14 per labor-hour

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated at the start of the fiscal year based on estimated costs and activities.

Labor-Hour

A measure of the amount of work or labor time required or used to produce a good or service.