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A furniture corporation manufactures two models of furniture-Standard and Deluxe. The total estimated manufacturing overhead costs are $64,200. The following estimates are available: ​ Standard Deluxe Direct materials cost per unit $250 $290 Direct labor cost per unit $125 $140 Number of units 240 600The company uses direct labor costs as the base to allocate manufacturing overhead. Calculate the predetermined overhead rate. (Round your answer to two decimal places.) 29.23% 27.44% 56.32% 191.07%

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facundobuzzetti

Answer:

The correct answer is C= 56.32%

Explanation:

Giving the following information:

The total estimated manufacturing overhead costs are $64,200. The company uses direct labor costs as the base to allocate manufacturing overhead.

Total labor cost:

Standard= 125*240= $30,000

Deluxe= 140*600= $84,000

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 64,200/114,000= 0.5632

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