raspberryox544

raspberryox544

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English3Psychology1Accounting2

Caines Company has the following estimated costs for next year:

                             Direct materials                                                       $80,000

                             Indirect materials                                                        8,000

                             Rent on factory equipment                                        20,000

                             Direct labor                                                               35,000

                             Salary of production supervisor                                60,000

                             Sales commissions                                                    25,000

                             Depreciation on factory building                              50,000

                             Advertising expense                                                  40,000

                             Factory utilities                                                         10,000

 

Caines estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000):    

  1. $14.80 c. $13.80
  2. $8.80 d. $14.00
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