29) Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to
apply manufacturing overhead to jobs. The Corporation has provided the following estimated
costs for the next year:
Ꮎ
Ꮎ
Ꮎ
Direct materials
Direct labor
Rent on factory building
Sales salaries
Depreciation on factory equipment
Indirect labor
Production supervisor's salary
Ꮎ
6,000
20,000
15,000
25,000
8,000
12,000
15,000
Ꮎ
Ꮎ
Ꮎ
Jameson estimates that 20,000 direct labor-hours will be worked during the year. The
predetermined overhead rate per hour will be:
A) $2.50 per direct labor-hour
B) $2.79 per direct labor-hour
C) $3.00 per direct labor-hour
D) $4.00 per direct labor-hour
Answers: 1
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29) Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to
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