Reference no: EM132706697
Question - The B-side Company allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the upcoming year:
Direct materials used $50,200
Direct labor costs $70,500
Wages of factory janitors $39,100
Sales supervisor salary $52,000
Utilities for factory $16,900
Rent on factory building $13,000
Advertising expense $5,690
The company estimates that 1,830 direct labor hours will be worked in the upcoming year, while 1,700 machine hours will be used during the year. Compute the predetermined manufacturing overhead rate per direct labor hour?
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