Calculate the predetermined overhead cost using Direct labor hours of 40,000 as your cost driver.

Type of Cost Selling and Administrative salaries and expenses Direct Labor {Estimated 40,000 DL hours @ average wage rate of $15 per hour] Indirect plant labor Plant utilities Purchases of direct materials Lease and property taxes on the plant Marketing expenses Depreciation on production equipment {equipment originally costing $700,000 three years ago is being depreciated over a 5 year useful life using straight-line depreciation. No salvage value is expected.) Indirect materials to be used in the plant Estimated total cost for the year 210,000 600,000 44,000 48,000 1,400,000 120,000 30,000 140,000 in l 20,000