Compute the overhead application rate

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Question - The Company applies overhead based on direct labor hours. The estimated direct labor hours for next year are 16,000 hours.

Direct labor

$90,000

Direct materials

72,000

Indirect labor

19,200

Indirect materials

8,400

Depreciation-factory building

8,200

Depreciation-factory machinery

4,200

Depreciation-office equipment

500

Factory utilities

4,900

Factory property taxes

3,100

Selling expenses

25,000

Miscellaneous overhead costs

5,600

General and administrative expenses

19,000

Compute the overhead application rate that will be used to apply overhead during the next year.

Reference no: EM131697696

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