Question
J Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs
J Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year:
| Direct materials | $ 6,000 |
| Direct labor | $12,000 |
| Rent on factory building | $15,000 |
| Sales salaries | $24,000 |
| Depreciation on factory equipment | $ 9,000 |
| Production supervisors salary | $30,000 |
J Co. estimates that 6,000 machine hours will occur during the year. What is the predetermined rate for the year?
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Primary English Audit And Test
Authors: Sue Reid, Angela Sawyer, Mary Bennett-Hartley
4th Edition
1446282759, 978-1446282755
