"Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year: Direct materials $ 20,000 Direct labor $ 60,000 Sales commissions $ 80,000Salary of production supervisor $ 40,000Indirect materials $ 8,000 Advertising expense $ 16,000 Rent on factory equipment $ 20,000 Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:A) $10.25 B)$4.25C) $9.00 D)$8.00

B) $ 4.25

Explanation:

From the data provided in the question, we need to classify the items into manufacturing costs.

Salary of production supervisor                                        $ 40,000

Indirect materials                                                                $   8,000

Rent on factory equipment                                                $  20,000

Total manufacturing costs                                                  $ 68,000

Estimated Machine Hours                                                      16,000

Manufacturing Overhead - $ 68,000/ 16,000 hours         $   4.25 per machine hours                                        

The other items provided in the question, sales commission and advertising expenses are selling expenses and are not manufacturing costs.

say it in english maybe we can

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !