Annual Overhead Costs Are Estimated to Be $750000 and Direct

Multiple Choice

Annual overhead costs are estimated to be $750000 and direct labor costs are estimated to be $1000000 then if the activity base is direct labor costs:

A) $1.33 is the predetermined overhead rate.
B) for every dollar of manufacturing overhead 75 cents of direct labor will be assigned.
C) for every dollar of direct labor 75 cents of manufacturing overhead will be assigned.
D) a predetermined overhead rate cannot be determined.