Horton Company applies overhead based on direct labor hours

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June 7th, 2024

Horton Company applies overhead based on direct labor hours. At the beginning of 20×1, the company estimated that manufacturing overhead would be $600,000, and direct labor hours would be 20,000. Actual overhead by the conclusion of 20×1 amounted to $700,000. On the basis of this information, Horton’s 20×1 predetermined overhead rate is: A. $0.02 per direct labor hour. B. $0.3 per direct labor hour. C. $30 per direct labor hour. D. $50 per direct labor hour. E. none of the above

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