Overhead rate per director labor hour

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Reference no: EM1341374

Johansen Company has the following estimated costs for the next year

Direct Materials 6000
Direct Labor 100000
Rent of Factory Building 15000
Sales Salaries 25000
Depreciation on factory equipment 8000
Indirect manufacturing materials 12000
Production 15000

Johansen pays $5 per hour for direct labor. If manufacturing overhead is applied on the basis of direct labor hours, the predetermined overhead rate per director labor hour will be

a) $2.50
b) $3.50
c) $3.75
d) $5.05
e) none of the above

Reference no: EM1341374

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