X company estimates that 1700 direct labor hours will be

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X Company has the following estimated costs for the year:

  • Direct materials $62,800
  • Direct labor 23,800
  • Factory supplies 21,000
  • Factory maintenance 30,200
  • Research and development 42,600
  • Factory rent 43,000
  • Sales salaries 40,000
  • Factory insurance 68,200


X Company estimates that 1,700 direct labor hours will be worked during the year, and machines will be operated for 63,000 hours during the year. If overhead is allocated on the basis of direct labor cost, what will the overhead rate be?

Reference no: EM13597430

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