Kelvin Aerospace, Inc., manufactures parts such as rudder hinges for the aerospace industry

Kelvin Aerospace, Inc., manufactures parts such as rudder hinges for the aerospace industry. The company uses a job-order costing system with a predetermined plantwide overhead rate based on direct labor-hours. On December 16, 2008, the company's controller made a preliminary estimate of the predetermined overhead rate for the year 2009. The new rate was based on the estimated total manufacturing overhead cost of $3,402,000 and the estimated 63,000 total direct labor-hours for 2009:

Predetermined overhead rate =3,402,000
63,000 hours
= $54 per direct labor – hour

AND SO ON

Click here for the SOLUTION