The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for October should be:

A) $4.60 per direct labor-hour
B) $21.50 per direct labor-hour
C) $20.30 per direct labor-hour
D) $16.90 per direct labor-hour

Predetermined Overhead Rate

A rate established in advance for allocating overhead costs to products or job orders, based on an estimated level of activity.

Direct Labor-hour

A measure of labor input based on the time workers spend on a specific task or product.