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Business, 05.04.2020 16:59 Arealbot

29) 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
Direct labor
Rent on factory building
Sales salaries
Depreciation on factory equipment
Indirect labor
Production supervisor's salary

6,000
20,000
15,000
25,000
8,000
12,000
15,000



Jameson estimates that 20,000 direct labor-hours will be worked during the year. The
predetermined overhead rate per hour will be:
A) $2.50 per direct labor-hour
B) $2.79 per direct labor-hour
C) $3.00 per direct labor-hour
D) $4.00 per direct labor-hour

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