Barr Mfg. provided the following information from its accounting records for 2013:
Expected production 30,000 labor hours
Actual production 28,000 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?
Select one:
a. $32.14 per hour
b. $30.00 per hour
c. $31.07 per hour
d. $29.00 per hour
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