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Author Question: Zarvo Moldings allocates manufacturing overhead to jobs based on machine hours. The company has the ... (Read 233 times)

student77

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Zarvo Moldings allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year:

Direct materials used $25,000
Direct labour costs $62,000
Salary of factory supervisor $41,000
Advertising expense $33,000
Heating and lighting costs for factory $21,000
Depreciation on factory equipment $9,000
Sales commissions $8,000

The company estimates that 1,800 direct labour hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year.


At Zarvo Moldings the predetermined manufacturing overhead rate per direct labour hour is closest to
◦ $111.
◦ $35.
◦ $39.
◦ $62.


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Marked as best answer by student77 on Jan 4, 2020

amcvicar

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