Business
Business, 11.02.2021 21:10, bbyrose29

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: 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
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

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