Gold Company computes its predetermined overhead rate on the basis of direct labor hours. Estimated direct labor hours at the beginning of the year are 70,000 and actual direct labor hours at the end of the year are 73,000. Estimated total manufacturing overhead costs at the beginning of the year are $910,000 and actual total manufacturing overhead costs at the end of the year are $955,000. The predetermined overhead rate for Gold Company would be:
- $13.08 per direct labor hour
- $12.47 per direct labor hour
- $13 per direct labor hour
- $13.64 per direct labor hour