Selected Information from the Budget of the Khalid Corp Calculate the Predetermined Overhead Allocation Rate If the Company Uses

Essay

Selected information from the budget of the Khalid Corp.at the beginning of the year follows:
$$\begin{array} { l c } \text { Estimated factory overhead } & \$ 132,000 \\\text { Estimated direct labor hours } & 55,000 \text { hours } \\\text { Estimated machine hours } & 41,250 \text { hours } \\\text { Estimated direct labor cost } & \$ 825,000 \\\text { Actual factory overhead } & \\\text { incured during the year } & \$ 144,000\end{array}$$
Calculate the predetermined overhead allocation rate if the company uses the following as a basis:
(A.Direct labor hours.
(B.Direct labor cost.
(C.Machine hours.