Capalbo Corporation Bases Its Predetermined Overhead Rate on the Estimated

Multiple Choice

Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the labor-hours for the upcoming year at 52,000 labor-hours.The estimated variable manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was $1,192,360.The actual labor-hours for the year turned out to be 52,600 labor-hours.The predetermined overhead rate for the recently completed year was closest to:

A) $2.78
B) $25.45
C) $25.71
D) $22.93