Branin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor- hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed:




Total direct labor-hours 250
Direct materials $ 715
Direct labor cost $ 9,000


The predetermined overhead rate is closest to:

Multiple Choice
$5.40 per direct labor-hour
$3.40 per direct labor-hour
$2.00 per direct labor-hour
$8.80 per direct labor-hour