Business, 01.02.2021 23:00, ijohnh14

Reamer Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year: Direct materials - $1000, Direct labor - $3000, Sales commissions - $4000, Salary of production supervisor - $2000, Indirect materials - $400, Advertising expense - $800, Rent on factory equipment - $1000. Reamer estimates that 500 direct labor hours and 1000 machine hours will be worked during the year. The predetermined overhead rate per hour will be: A. $6.80
B. $6.00
C. $3.00
D. $3.40

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Reamer Company uses a predetermined overhead rate based on machine hours to apply manufacturing over...