Johnson Company Estimates That Its Production Workers Will Work 88,000

Multiple Choice

Johnson Company estimates that its production workers will work 88,000 direct labor hours to produce 8,800 units during the upcoming period and that overhead costs will amount to $880,000.During the year,its manufacturing employees actually worked 100,000 direct labor hours to produce 10,000 units and incurred $1,100,000 of overhead costs.Because the goods made by Johnson are homogeneous (that is,they are identical) ,the company has decided it makes sense to use number of units as the allocation base for overhead.Based on this information the predetermined overhead rate is:

A) $110.00 per unit.
B) $10.00 per direct labor hour.
C) $100.00 per unit.
D) $11.00 per direct labor hour.