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ABC Company applies overhead to products using direct Labor hours as the activity level. During 2020, ABC Company had the following estimated costs: . .
ABC Company applies overhead to products using direct Labor hours as the activity level. During 2020, ABC Company had the following estimated costs: . . Direct materials .................... Direct labor ... Advertising ....... Rent on factory building Depreciation .... Indirect materials Sales commissions. Production supervisor's salary ..... Insurance on factory equipment ..... CEO's salary ....... $258,000 255,000 35,000 36,000 60,000 39,000 50,000 59,000 21,000 95,000 . ......... The following additional information is available: 1. 30% of the depreciation relates to equipment in the administrative offices while 70% of the depreciation relates to equipment in the factory. 2. 20,000 direct labor hours are estimated for 2020. Calculate ABC Company's pre-determined overhead rate (PDR) for 2020 based on direct labor hours. Enter your answer with two places after the decimal point (i.e., 6.78)
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