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Reardon, Inc. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead. The company has provided the following estimated costs for
Reardon, Inc. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead. The company has provided the following estimated costs for the year: Direct materials $ 6,000 Direct labor $ 20,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $ 8,000 Indirect labor $ 12,000 Production supervisor's salary $ 15,000 Cunningham estimates that it will use 10,000 direct labor hours during the year. Required: 1. Calculate the predetermined overhead rate. 2. If Cunningham uses 50 direct labor hours on Job QRT, how much overhead was allocated to the job
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