Find predetermined overhead rate based on direct labor hours

Reference no: EM131882916

Question: 1. Jordan Corporation estimated its overhead costs would be $23,400 per month except for January when it pays the $150,840 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $174,240 ($150,840 + $23,400). The company expected to use 7,600 direct labor hours per month except during July, August, and September when the company expected 9,900 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,800 units of product in each month except July, August, and September, in which it produced 4,950 units each month. Direct labor costs were $23.40 per unit, and direct materials costs were $11.80 per unit.

Required: Calculate a predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places.)

Reference no: EM131882916

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