Question
9 Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following
9 Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 6,000 Direct labor 02:51:20 Rent on factory building Sales salaries Indirect labor $ 20,000 $ 15,000 $ 25,000 Depreciation on factory equipment $ 8,000 $ 12,000 Production supervisor's salary $ 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: Multiple Choice $2.50 per direct labor hour $2.79 per direct labor-hour $3.00 per direct labor-hour 54.00 per direct labor-hour
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