Johansen Company has the following estimated costs for the next year: Direct materials $6,000 Direct labor $ 100,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $8,000 Indirect manufacturing materials $ 12,000 Production supervisor's salary $ 15,000 Johansen pays $5 per hour for direct labor. If manufacturing overhead is applied on the basis of direct labor hours, the predetermined overhead rate per direct labor hour will be a. $2.50. b. $3.50. c. $3.75. d. $5.05. e. none of these.

Johansen Company has the following estimated costs for the next year: Direct materials $6,000 Direct labor $ 100,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $8,000 Indirect manufacturing materials $ 12,000 Production supervisor's salary $ 15,000 Johansen pays $5 per hour for direct labor. If manufacturing overhead is applied on the basis of direct labor hours, the predetermined overhead rate per direct labor hour will be a. $2.50. b. $3.50. c. $3.75. d. $5.05. e. none of these.

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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