Jackson Inc. listed the following data for 2016: Budgeted factory overhead Budge
ID: 2336169 • Letter: J
Question
Jackson Inc. listed the following data for 2016: Budgeted factory overhead Budgeted direct labor hours Budgeted machine hours Actual factory overhead Actual direct labor hours Actual machine hours Round calculations to 2 significant digits $1,271,000 82,000 41,000 1,201,000 86,300 39,400 Assuming Jackson Inc. applied overhead based on direct labor hours, the fim's predetermined overhead rate for 2016 is O $14.20 per direct labor hour. $14.38 per direct labor hour. O $15.24 per direct labor hour. O $15.50 per direct labor hour o $15.85 per direct labor hour.Explanation / Answer
Answer is $15.50 per direct labor hour
Budgeted factory overhead = $1,271,000
Budgeted direct labor hours = 82,000
Predetermined overhead rate = Budgeted factory overhead / Budgeted direct labor hours
Predetermined overhead rate = $1,271,000 / 82,000
Predetermined overhead rate = $15.50 per direct labor hour
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