2 Baines Company has the following estimated costs for next year: Direct materials $25,000 65,000 2,000...

 

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2 Baines Company has the following estimated costs for next year: Direct materials $25,000 65,000 2,000 14,000 12,000 15,000 1,000 6,000 20,000 40,000 10,000 Salary of production supervisor Indirect materials Rent on factory equipment Depreciation on Office Equipment Sales commissions Supplies for the factory lunchroom Customer shipping Wages of factory security personnel Direct labor Advertising expense Baines estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000): a. $8.10. b. $10.20. c. $11.40. d. $8.20. 2 Baines Company has the following estimated costs for next year: Direct materials $25,000 65,000 2,000 14,000 12,000 15,000 1,000 6,000 20,000 40,000 10,000 Salary of production supervisor Indirect materials Rent on factory equipment Depreciation on Office Equipment Sales commissions Supplies for the factory lunchroom Customer shipping Wages of factory security personnel Direct labor Advertising expense Baines estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000): a. $8.10. b. $10.20. c. $11.40. d. $8.20.

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To calculate the overhead rate per machine hour you need to sum up the costs that are considered ... View the full answer