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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Jameson Corporation Uses a Predetermined Overhead Rate Based on Direct