Predetermined overhead rate per direct labor hour

Reference no: EM13141469

Techniques, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:

Direct materials

$150,000

Direct labor

200,000

Sales commissions

100,000

Indirect labor

50,000

Rent on office equipment

25,000

Depreciation - factory building

75,000

Utilities - factory

125,000

Techniques used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?

Reference no: EM13141469

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