Figure 11-4

Multiple Choice

Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
Refer to Figure 11-4.The predetermined variable overhead rate is:

A) $3.00 per direct labor hour.
B) $2.50 per direct labor hour.
C) $5.50 per direct labor hour.
D) $3.35 per direct labor hour.
E) none of these are correct.