The hourly rate for a certain work center is to be determined based on the following data direct labor rate $15 00 hr applicable factory overhead rate on labor 35 capital investment in machine $200,000 service life of the machine 5 years rate of return 15 salvage value in five years zero and applicable factory overhead rate on machine 40 The work center will be operated two 8 hour shifts, 250 days per year Determine the appropriate hourly rate for the work center

Question: The hourly rate for a certain work center is to be determined based on the following data: direct labor rate = $15.00/hr; applicable factory overhead

The hourly rate for a certain work center is to be determined based on the following data: direct labor rate = $15.00/hr; applicable factory overhead rate on labor = 35%; capital investment in machine = $200,000; service life of the machine = 5 years; rate of return = 15%; in five years = zero; and applicable factory overhead rate on machine = 40%. The work center will be operated two 8-hour shifts, 250 days per year. Determine the appropriate hourly rate for the work center.

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