“18. Jameson Company has the following estimated costs for the next year: Direct materials $ 5,000 Direct labor 19,000 Rent on factory building 16,000 Sales salaries 24,000 Depreciation on factory equipment 7,000 Indirect labor 11,000 Production supervisor’s salary 14,000 Jameson estimates that 24,000 direct labor hours will be worked during the year. If overhead is applied on the basis of direct labor hours, the overhead rate per hour will be: a. $2.00 b. $2.79 c. $3.00 d. $4.00”,”1The overhead rate per hour:Predetermined OH rate = Estimated MOH costs / Estimated activity base:= (16,000+7,000+11,000+14,000)/24

“18. Jameson Company has the following estimated costs for the next year: Direct materials $ 5,000 Direct labor 19,000 Rent on factory building 16,000 Sales salaries 24,000 Depreciation on factory equipment 7,000 Indirect labor 11,000 Production supervisor’s salary 14,000 Jameson estimates that 24,000 direct labor hours will be worked during the year. If overhead is applied on the basis of direct labor hours, the overhead rate per hour will be: a. $2.00 b. $2.79 c. $3.00 d. $4.00”,”1The overhead rate per hour:Predetermined OH rate = Estimated MOH costs / Estimated activity base:= (16,000+7,000+11,000+14,000)/24

000DLH= $2.00 per DLH”