Company predetermined overhead rate


A company expected its annual overhead costs to be $600,000 and direct labor costs to be $1,000,000. Actual overhead was $580,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

A) $0.58

B) $0.53

C) $0.60

D) $0.55

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Accounting Basics: Company predetermined overhead rate
Reference No:- TGS081421

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