What would be the predetermined overhead rate?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...
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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?
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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