Question: Macallan Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated

Macallan Corporation uses a predetermined overhead rate based on direct labor-hours to

Macallan 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 $5,000 Direct labor $19,000 Rent on factory building $16,000 Sales salaries $24,000 Depreciation on factory equipment $7,000 Indirect labor $11.000 $14,000 Production supervisor's salary Macallan estimates that 24,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: O $4.00 per DLH O $2.00 per DLH O $2.79 per DLH O $3.00 per DLH

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