What is the company''s predetermined overhead rate

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Reference no: EM131013842

Reformer Company estimates that 64,000 direct labor hours will be worked and 80,000 machine hours will be incurred during the year. In addition, the company has developed the following cost estimates for next year:

Sales commissions	$600,000
Direct labor	440,000
Salary of production supervisor	280,000
Rent on factory equipment	128,000
Direct materials	120,000
Advertising expense	88,000
Indirect materials	40,000

If overhead is applied on the basis of direct labor hours, what is the company's predetermined overhead rate?

Reference no: EM131013842

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