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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:5.
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
D. $8.00
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