Question: Keish company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. the company has provied the following estimated cost

Keish company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. the company has provied the following estimated cost for the next year

direct materials $10,000

direct labour 30,000

sales commission 40,000

Salary of production supervisor 20,000

indirect material 4,000

advertising expense 8,000

rent on factory equipment 10,000

keish estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. what will be the predetermined overhead rate per hour?

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