Johansen Corporation Uses a Predetermined Overhead Rate Based on Direct

question 168

Multiple Choice

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for the next year: Jameson estimates that 20,000 direct labor-hours will be worked during the year.The predetermined overhead rate per hour will be:

• A)$2.50 per direct labor-hour
• B)$2.79 per direct labor-hour
• C)$3.00 per direct labor-hour
• D)$4.00 per direct labor-hour

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Definitions:

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