45.1k views
0 votes
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:

User Kvc
by
6.8k points

1 Answer

5 votes

Answer:

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

User Pit
by
7.4k points