Johansen 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:
Direct materials
$
6,000
Direct labor
$
20,000
Rent on factory building
$
15,000
Sales salaries
$
25,000
Depreciation on factory equipment
$
8,000
Indirect labor
$
12,000
Production supervisor's salary
$
15,000
Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:
