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Lucid Lighting uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Lucid has provided the following estimated costs for next year: Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment OH Costs Lucid estimates that 10,000 direct labor-hours and 15,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:

Respuesta :

Tundexi

Answer:

$2.27

Explanation:

Note: The missing word is attached as picture

Salary of production supervisor           $20,000

Indirect materials                                   $4,000

Rent of factory Equipment                    $10,000

Total estimated factory overhead        $34,000

Divide by Estimated machine hours     15,000

Predetermined overhead rate             $2.27

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