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For the year, there are 6,000 budgeted direct labor hours. The variable overhead rate is...

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Accounting

For the year, there are 6,000 budgeted direct labor hours. The variable overhead rate is estimated to be $8/direct labor hour. Fixed manufacturing overhead is $36,000 for the year, which includes $4,000 of depreciation. What is the budgeted predetermined overhead rate?
  • A. $8 per direct labor hour
  • B. $13.33 per direct labor hour
  • C. $14 per direct labor hour
  • D. $14.67 per direct labor hour

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