Question

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. What is the predetermined manufacturing overhead rate?

A) $6.32 per direct labor hour

B) $0.016 per direct labor hour

C) $63.20 per direct labor hour

D) $16.00 per direct labor hour

Answer

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