A professional consulting firm estimates its direct labor costs to be $2,800,000 for the year. The estimated direct labor hours are 40,000. Overhead is allocated based on direct labor hours, and estimated overhead is $900,000 annually. The business desires a 50% markup. Calculate the direct labor rate per hour.

A professional consulting firm estimates its direct labor costs to be $2,800,000 for the year. The estimated direct labor hours are 40,000. Overhead is allocated based on direct labor hours, and estimated overhead is $900,000 annually. The business desires a 50% markup. Calculate the direct labor rate per hour.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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