calculate the predetermined overhead rate used in job order costing: P. Heating/Cooling installs and services commercial heating
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Question:
calculate the predetermined overhead rate used in job order costing:
P. Heating/Cooling installs and services commercial heating and cooling systems.
P. uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. P. estimated that its overhead for the coming year would be $63,750. It also anticipated using 4,250 direct labor hours for the year.
What is the predetermined overhead rate based on direct labor hours?
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