Question: Techniques, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has

Techniques, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:

Direct materials $150,000

Direct labor 200,000

Sales commissions 100,000

Indirect labor 50,000

Rent on office equipment 25,000

Depreciation - factory building 75,000

Utilities – factory 125,000

Techniques used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?

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