DougCo expected its annual overhead costs to be 2100000 and

DougCo expected its annual overhead costs to be $2,100,000 and direct labor costs to be $1,200,000. Actual overhead was $1,740,000, and actual labor costs totaled $1,100,000. How much is the company\'s predetermined overhead rate to the nearest cent?

Solution

Company\'s predetermined overhead rate = 2100000/1200000= 1.75