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Steele Company Uses a Predetermined Overhead Rate Based on Machine

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Steele Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. Steele Company has provided the following estimated costs for next year. $\begin{array}{lrr} \text { Direct materials. } &£ 20,000\\ \text { Direct Labour } &60,000\\ \text { Sales commissions } &80,000\\ \text {Salary of production supenisor } &40,000\\ \text { Indirect materials } &8,000\\ \text { Advertising expense } &16,000\\ \text { Rent on factory equipment } &20,000\end{array}$

Steele estimates that 10,000 direct Labour hours and 16,000 machine hours will be worked during the year. The predetermined overhead rate per hour will be:

Definitions:

Textiles

Materials or fabrics made from weaving, knitting, or felting fibers, used in the production of clothing, furniture, and other goods.

Machine Tools

Machines used for shaping or machining metal or other rigid materials, typically by cutting, boring, grinding, or shearing.

Captains Of Industry

Refers to business leaders whose means of amassing a personal fortune contributes positively to the country in some way. This term often describes various industrialists and entrepreneurs in the late 19th and early 20th centuries.

John D. Rockefeller

was an American industrialist and philanthropist who played a pivotal role in the development of the petroleum industry, becoming one of the wealthiest historical figures and founding Standard Oil Company.