The predetermined overhead rate for the Customizing Department is closest to:

A) $3.30 per direct labor-hour
B) $12.70 per direct labor-hour
C) $9.40 per direct labor-hour
D) $4.76 per direct labor-hour

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead to products based on a certain activity base.

Customizing Department

A specialized department in a company that modifies products to meet specific customer requirements or preferences.

Direct Labor-Hour

A direct labor-hour is a unit of measure representing the labor time directly involved in the production of goods.