Baker Corporation applies manufacturing overhead on the basi

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $95,790 and 3,100 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $97,590 and actual direct labor-hours were 3,000. The predetermined overhead rate for the year was closest to: (Round your answer to 2 decimal places.)

Solution

predetermined overhead rate=estimated overhead/estimated direct labor-hours

=($95790/3100)

which is equal to

=$30.9 per direct labor-hour.