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Calculate the predetermined overhead rate per hour

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    Assignment ID: FG132980857

    Question – 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. Calculate the predetermined overhead rate per hour.

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