Question
Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity
Predetermined Factory Overhead Rate
Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH).
| Estimated Selected Amounts for the Year | |
| Estimated depreciation on equipment | $1,200 |
| Estimated total Office Manager/Knitting Supervisor wages | $42,000 |
| Estimated office utilities | $5,000 |
| Estimated factory utilities | $4,800 |
| Estimated factory rent | $18,000 |
| Activity Base Data | |
| Estimated number of DLH for the year | 5,000 |
| Estimated number of MH for the year | 3,500 |
Compute the predetermined factory overhead rate for the current year?
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Physics for Scientists and Engineers A Strategic Approach with Modern Physics
Authors: Randall D. Knight
4th edition
978-0133942651
