Answer:
$51
Explanation:
Given that,
Total estimated overhead = $240,300
Estimated direct labor hours = 4,690
Actual manufacturing overhead = $243,000
Actual direct labor-hours = 4,640
Hence,
Predetermined overhead rate:
= Total budgeted overhead cost for the year ÷ Total budgeted direct labor hours
= $240,300 ÷ 4,690 estimated direct labor hours
= $51.2367
Therefore, the predetermined overhead rate for the year was closest to $51.