Barr Mfg. provided the following information from its accounting records for 2017:

Barr Mfg. provided the following information from its accounting records for 2017:

Expected production	60,000 labor hours
Actual production	56,000 labor hours
Budgeted overhead	$900,000
Actual overhead	$870,000

How much is the overhead application rate if Barr bases the rate on direct labor hours?

$14.50 per hour

$16.07 per hour

$15.00 per hour

$15.54 per hour

Manufacturing overhead is applied to each job

at the time when the overhead cost is incurred.

only if the overhead costs can be directly traced to that job.

at the end of the year when actual costs are known.

by means of a predetermined overhead rate.

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

actual overhead rate.

predetermined overhead rate.

estimated overhead rate.

assigned overhead rate.