Calculate the predetermined overhead rate per hour

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Question - Johansen 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 $6,000

Direct labor $20,000

Rent on factory building $15,000

Sales salaries $25,000

Depreciation on factory equipment $8,000

Indirect labor $12,000

Production supervisor's salary $15,000

Jameson estimates that 20,000 direct labor-hours will be worked during the year. Calculate the predetermined overhead rate per hour.

Reference no: EM132980857

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