Verge Incorporated assigns factory overhead by predetermined overhead rate on the basis of direct labor hours...

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Verge Incorporated assigns factory overhead by predetermined overhead rate on the basis of direct labor hours instead of units produced. Factory cost for the two recent years were as follows: Year 1 Year 2 Direct Labor Hours 2,760,000 2,160,000 Units Produced 900,000 550,000 Costs Indirect Labor 11,040,000 8,640,000 Employee benefits 4,140,000 3,240,000 Supplies 2,760,000 2,160,000 Direct Materials 5,520,000 4,320,000 Power 2,208,000 1,728,000 Heat and Light 552,000 552,000 Supervision 2,865,000 2,625,000 Direct Labor 4.968,000 3,888,000 Depreciation 7.930,000 7,930,000 Property, taxes and insurance 3,005,000 3,005.000 The company expects to operate at a level of activity of 2.200,000 direct labor hours next year. Compute for the estimated total factory overhead for next year. O 13.248.000 O 27,183.000 O 26.888,000 O 30.188.000 Verge Incorporated assigns factory overhead by predetermined overhead rate on the basis of direct labor hours instead of units produced. Factory cost for the two recent years were as follows: Year 1 Year 2 Direct Labor Hours 2,760,000 2,160,000 Units Produced 900,000 550,000 Costs Indirect Labor 11,040,000 8,640,000 Employee benefits 4,140,000 3,240,000 Supplies 2,760,000 2,160,000 Direct Materials 5,520,000 4,320,000 Power 2,208,000 1,728,000 Heat and Light 552,000 552,000 Supervision 2,865,000 2,625,000 Direct Labor 4.968,000 3,888,000 Depreciation 7.930,000 7,930,000 Property, taxes and insurance 3,005,000 3,005.000 The company expects to operate at a level of activity of 2.200,000 direct labor hours next year. Compute for the estimated total factory overhead for next year. O 13.248.000 O 27,183.000 O 26.888,000 O 30.188.000

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Answer 30188000 Calculation 1 Supervision Supervision is a m... View the full answer