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What will be the predetermined overhead rate

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Reference no: EM132517177

Keish company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provied the following estimated cost for the next year

direct materials $10,000

direct labour 30,000

sales commission 40,000

Salary of production supervisor 20,000

indirect material 4,000

advertising expense 8,000

rent on factory equipment 10,000

Question 1: Keish estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. what will be the predetermined overhead rate per hour?

Reference no: EM132517177

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