Reference no: EM132668551
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.
Problem 1: The predetermined manufacturing overhead rate per direct labor hour will be?