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Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for

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Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year: Direct materials $ 20,000 Direct labor $ 60,000 Sales commissions 80,000 Salary of production supervisor $ 40,000 Indirect materials $ 8,000 Advertising expense $ 16.000 Rent on factory equipment 20,000 Steele estimates that 10,000 direct labor-hours and 16,000 machine hours will be worked during the year. The predetermined overhead rate per hour will be: $4.25 $10.25 $9.00 $8.00

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