What is the predetermined factory overhead rate


The chief cost accountant for Sassy Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning June 1 would be $97,500, and total direct labor costs would be $75,000. During June, the actual direct labor cost totaled $6,300, and factory overhead cost incurred totaled $8,250.

a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.

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Accounting Basics: What is the predetermined factory overhead rate
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