Calculate paulson company pre-determined overhead rate

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Reference no: EM131765524

Question: Paulson Company had the following estimated costs for 2019:

Direct materials .................... $28,000

Direct labor ........................ 22,000

Advertising expense ................. 15,000

Rent on factory building ............ 13,500

Depreciation on factory equipment ... 6,500

Indirect materials .................. 10,000

Sales commissions ................... 28,000

Production supervisor's salary ...... 40,000

Insurance on equipment .............. 15,000

It is known that 40% of the insurance relates to equipment in the administrative offices while 60% of the insurance relates to equipment in the factory. Paulson Company estimates that 25,000 machine hours will be used during 2019. Calculate Paulson Company's pre-determined overhead rate based on machine hours. List your answer with two places after the decimal point (i.e., $7.60).

Reference no: EM131765524

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