Jameson Corporation Uses a Predetermined Overhead Rate Based on Direct

question 20

Multiple Choice

Jameson 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 24,000 direct labor-hours will be worked during the year.The predetermined overhead rate per hour will be:

• A)$2.00
• B)$2.79
• C)$3.00
• D)$4.00

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