Neffer Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year:

Budgeted Actual
Overhead cost $2,000,000 $1,900,000
Computer hours 100,000 90,000
Direct labor hours 200,000 180,000
Overhead is applied on the basis of computer hours.

Compute the predetermined overhead rate.

Answer rating: 100% (QA)

To compute the predetermined overhead rate we need to divide the budgeted overhea... View the full answer