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deroth deroth
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A year ago

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:

Direct materials$ 6,000
Direct labor$ 20,000
Rent on factory building$ 15,000
Sales salaries$ 25,000
Depreciation on factory equipment$ 8,000
Indirect labor$ 12,000
Production supervisor's salary$ 15,000

Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:



▸ $2.50 per direct labor-hour

▸ $2.79 per direct labor-hour

▸ $3.00 per direct labor-hour

▸ $4.00 per direct labor-hour
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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prospectjayprospectjay
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A year ago
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