Aronson & Associates LLP
Aronson & Associates LLP, an Accounting

Multiple Choice

Aronson & Associates LLP
Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labour hours. The following information is available for the month of March:
$\begin{array}{ll}\text { Estimated direct labour hours } & 4000 \text { hours } \\\text { Estimated overhead costs } & \$ 8000 \\\text { Actual direct labour hours } & 4200 \text { hours } \\\text { Actual overhead costs } & \$ 8190\end{array}$

-The predetermined overhead rate for the month of March is:

A) $2.00 per direct labour hour
B) $ .50 per direct labour hour
C) $1.95 per direct labour hour
D) $1.90 per direct labour hour