What would be the predetermined overhead rate?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:3. Melendez Corporation uses a predetermined overhead rate based on direct labor hours to apply
manufacturing overhead to jobs during the year.
Direct materials
Direct labor
Production supervisor's salary
Indirect labor
Sales salaries
Depreciation on factory equipment
Depreciation on sales office copy machines
Factory rent
$50,000
95,000
62.000
34.000
58.000
26.000
7,000
88,000
I
Melendez estimates that 12,000 direct labor-hours will be worked during the year.
What would be the predetermined overhead rate?
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