Dallas Company uses a job order costing system. Th company's executives estimated that direct labor wor be $5,040,000 (180,000 hours at $28/hour) and that actory overhead would be $1,420,000 for the curren period. At the end of the period, the records show th here had been 100,000 hours of direct labor and $1,120,000 of actual overhead costs. Using direct lab hours as a base, what was the predetermined overhe ate? (Round your answer to two decimal places.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dallas Company uses a job order costing system. The
company's executives estimated that direct labor would
be $5,040,000 (180,000 hours at $28/hour) and that
factory overhead would be $1,420,000 for the current
period. At the end of the period, the records show that
there had been 100,000 hours of direct labor and
$1,120,000 of actual overhead costs. Using direct labor
hours as a base, what was the predetermined overhead
rate? (Round your answer to two decimal places.)
Multiple Choice
$7.30 per direct labor hour.
$14.20 per direct labor hour.
$7.89 per direct labor hour.
$6.22 per direct labor hour.
$6.89 per direct labor hour.
Transcribed Image Text:Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $5,040,000 (180,000 hours at $28/hour) and that factory overhead would be $1,420,000 for the current period. At the end of the period, the records show that there had been 100,000 hours of direct labor and $1,120,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.) Multiple Choice $7.30 per direct labor hour. $14.20 per direct labor hour. $7.89 per direct labor hour. $6.22 per direct labor hour. $6.89 per direct labor hour.
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