Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $2,310,000 (210,000 hours at $11/hour) and that factory overhead would be $1,510,000 for the current period. At the end of the period, the records show that there had been 190,000 hours of direct labor and $1,210,000 of actual overhead costs. Using direct labor hours as a base, what was the pre-determined overhead rate? a. $5.17 per direct labor hour.
b. $7.00 per direct labor hour.
c. $6.42 per direct labor hour.
d. $5.84 per direct labor hour.
e. $6.25 per direct labor hour.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.