Question

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, actual labor hours were 21,000. The predetermined manufacturing overhead rate per direct labor hour would be:

Answer 1

The predetermined manufacturing overhead rate per direct labor hour is $20

Step-by-step explanation:

The computation of the predetermined manufacturing overhead rate per direct labor hour is shown below:

= Estimated manufacturing overhead ÷ direct labors hours

= $400,000 ÷ 20,000 direct labor hours

= $20

hence, the predetermined manufacturing overhead rate per direct labor hour is $20

We simply applied the above formula so that the correct value could come

And, the same is to be considered