What is the estimated activity base direct labor hours

Reference no: EM13610952

California Customs Designs, LLC, is a business that customizes motorcycles and automobiles according to the customers' specifications. The company uses a job-order accounting system. Factory overhead is applied to production on the basis of direct labor hours. Estimated overhead costs for the coming year amount to $860,000. The company expects to operate at 80% of capacity, utilizing 16,000 direct labor hours. Inputs:

1. What is the estimated total factory overhead costs?

2. What is the estimated activity base direct labor hours?

3. What is the predetermined factory overhead rate per direct labor hour?

Reference no: EM13610952

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