Davis company has analyzed its overhead costs and derived a general formula for their behavior: $60,000 + $14 per direct labor hour employed. the company expects to use $50,000 direct labor hours during the next accounting period. what overhead rate per direct labor hour should be applied to jobs worked during the period? round answer to two decimal places.

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.