Question: Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated

Kelsh Company uses a predetermined overhead rate based on machine hours to

Kelsh 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 next year: Direct materials Direct labour Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment $10,000 30,000 40,000 20.000 4,000 8.000 10,000 I Kelsh estimates that 5.000 direct labour hours and 10.000 machine hours will be worked during the year. The predetermined overhead rate per hour will be:

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