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What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours

User Benxamin
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1 Answer

7 votes

Answer:

$44,268

Step-by-step explanation:

Calculation for What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours

First step is to calculate the Plant-wide Overhead Rate using this formula

Plant-wide Overhead Rate = Total Overhead / Total Direct Labor Hours

Let plug in the formula

Plant-wide Overhead Rate = $632,400 / 4,800 hours

Plant-wide Overhead Rate = $131.75

Now let calculate the total manufacturing overhead for the current product order

Using this formula

Current product order Total Manufacturing Overhead = Plant-wide Overhead Rate * Direct Labor Hours

Let plug in the formula

Current product order Total Manufacturing overhead= $131.75 *336 hours

Current product order Total Manufacturing overhead= $44,268

Therefore the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours will be $44,268

User John David
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