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GrogVix [38]
3 years ago
8

Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.

Business
1 answer:
Nana76 [90]3 years ago
8 0

Answer:

d) 34.17

Explanation:

we must first calculate the total overhead expenses = $120,000 (ordering and receiving) + $297,000 (machine setup) + $1,500,000 (machining) + $1,200,000 (assembly parts) + $300,000 (inspection) = $3,417,000

since overhead is applied based on direct labor hours, then the predetermined overhead rate = total overhead expenses / total direct labor hours = $3,417,000 / 100,000 labor hours = $34.17 per labor hour

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