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Sky High Company has two departments X and Y. The following estimates are for the...

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Accounting

  1. Sky High Company has two departments X and Y. The following estimates are for the coming year:

X

Y

Direct manufacturing labor-hours

20,000

40.000

Machine-hours

40,000

20,000

Manufacturing overhead

$200,000

$400,000

A single indirect cost rate based on direct manufacturing labor-hours for the entire plant is ?

  1. $12 per direct labor hour
  2. $15 per direct labor-hour
  3. $21 per direct labor-hour
  4. $10 per direct labor hour
  5. None of the above

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