“23. Steele Company has the following estimated costs for next year: Direct materials $20,000 Direct labor 60,000 Sales commissions 80,000 Salary of production supervisor 40,000 Indirect materials 8,000 Advertising expense 16,000 Rent on factory equipment 20,000 Steele estimates that 10,000 direct labor hours and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, the overhead rate per hour will be: a. $4.25 b. $8.00 c. $9.00 d. $10.25”

“23. Steele Company has the following estimated costs for next year: Direct materials $20,000 Direct labor 60,000 Sales commissions 80,000 Salary of production supervisor 40,000 Indirect materials 8,000 Advertising expense 16,000 Rent on factory equipment 20,000 Steele estimates that 10,000 direct labor hours and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, the overhead rate per hour will be: a. $4.25 b. $8.00 c. $9.00 d. $10.25”

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