Question 6

Paulson Company had the following estimated costs: Direct materials Direct labor ... Depreciation on factory equipment Sales commissions Indirect materials Rent on factory building Insurance on equipment Production supervisor's salary Advertising expense $200,000 $180,000 $ 41,000 $108,000 $ 67,000 $ 59,000 $ 53.000 $82,000 $ 73,000 4 pts It is known that 40% of the insurance relates to equi pment in the factory while 60% of the insurance relates to the equipment in the sales building. Paulson Company estimates that they will use 20,000 m achine hours. Calculate Paulson Company's pre-determined overhead r ate (PDR) based on machine hours.

Paulson Company had the following estimated costs: It is known that 40% of the insurance relates to equi pment in the factory while 60% of the insurance relates to the equipment in the sales building. Paulson Company estimates that they will use 20,000m achine hours. Calculate Paulson Company's pre-determined overhead r ate (PDR) based on machine hours