Baker Corporation Applies Manufacturing Overhead on the Basis of Direct

Multiple Choice

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The predetermined overhead rate for the year was closest to:

A) $34.95
B) $34.83
C) $34.98
D) $35.10