Below is the Rose Company’s Manufacturing Overhead Budget for the 1st quarter of the year:

	January	February	March	Quarter
Direct Labor Hours	10,000	9,500	9,100	28,600
Variable manufacturing overhead per hour	$5.00	$5.00	$5.00	$5.00
Total variable manufacturing overhead	$50,000	$47,500	$45,500	$143,000
Fixed manufacturing overhead	40,000	40,000	40,000	120,000
Total manufacturing overhead	$90,000	$87,500	$85,500	$263,000
Less: Depreciation	20,000	20,000	20,000	60,000
Cash disbursements for manufacturing overhead	$70,000	$67,500	$65,500	$203,000

Rose uses direct labor hours as its overhead allocation base. The company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the quarter is closest to:

$7.10 per direct labor hour

$4.38 per direct labor hour

$5.00 per direct labor hour

$9.20 per direct labor hour

Answer rating: 100% (QA)

Correct Option D ie 920 p... View the full answer