The cost of raw materials purchased during the year amounted to:

A) $316,000.
B) $360,000.
C) $336,000.
D) $411,000.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a predetermined basis such as direct labor hours.

Direct Labour-Hours

The total hours of labor directly involved in the production of goods or services, often used as a basis for allocating overhead costs.

Direct Material Purchased

The raw materials acquired that are directly used in the manufacturing of a product.