Jameson Company estimates the following costs for the coming year. Direct materials ..................................... $ 5,000 Direct Labor
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Direct materials ..................................... $ 5,000
Direct Labor .......................................... $19,000
Rent of factory building............................. $16,000
Sales salaries .......................................... $24,000
Depreciation on factory equipment................ $17,000
Direct Labor .......................................... $15,000
Production supervisor's salary........................ $24,000
Jameson also estimates that 18,000 direct labor hours will be worked during the coming year. If manufacturing overhead is applied on the basis of direct lab hours, the predetermined overhead rate will be
• $2.00 / DLH
• $2.79 / DLH
• $3.00 / DLH
• $4.00 / DLH
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400DLH Predetermined overhead rate Total Manufacturing overhead Direct Labour hours 72000 1800...View the full answer
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