(Appendix 10A) Furtado Incorporated Makes a Single Product--A Cooling Coil

Multiple Choice

(Appendix 10A) Furtado Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-The predetermined overhead rate is closest to:

A) $6.40 per labor-hour
B) $7.79 per labor-hour
C) $5.45 per labor-hour
D) $9.14 per labor-hour