Find predetermined indirect allocation rate per machine hour

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ZamTech Moldings allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year:Direct materials used $25,000, Direct labour costs $62,000, Salary of factory supervisor $41,000, Advertising expense $33,000, Heating and lighting costs for factory $21,000, Depreciation on factory equipment $9,000, Sales commissions $8,000. The company estimates that 1,800 direct labour hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year.

Question 1: The predetermined indirect allocation rate per machine hour is closest to

Reference no: EM132520768

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