Unigloo Corporation uses a predetermined overhead rate based on direct labour-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $5,000 Direct labour $19,000 Rent on factory building $16,000 Sales salaries $24,000 Depreciation of corporate office printers $13,000 Depreciation on factory machinery $7,000 Indirect materials $11,000 Indirect labour $14,000 Unigloo estimates that 12,000 direct labour-hours will be worked during the year. The predetermined overhead rate per hour will be A. $4.00 B. $5.58 C. $6.00
Unigloo Corporation uses a predetermined overhead rate based on direct labour-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $5,000 Direct labour $19,000 Rent on factory building $16,000 Sales salaries $24,000 Depreciation of corporate office printers $13,000 Depreciation on factory machinery $7,000 Indirect materials $11,000 Indirect labour $14,000 Unigloo estimates that 12,000 direct labour-hours will be worked during the year. The predetermined overhead rate per hour will be A. $4.00 B. $5.58 C. $6.00
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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