Question

Manufacturing overhead was estimated to be $380,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $395,000, actual labor hours were 22,300. The predetermined overhead rate per direct labor hour would be:

Answer 1

the predetermined overhead rate per direct labor hour would be $19

Step-by-step explanation:

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

Predetermined overhead rate per direct labor is

= (Estimated manufacturing overhead) ÷ (direct labor hour)

= ($380,000) ÷ ($20,000)

= $19

Hence, the predetermined overhead rate per direct labor hour would be $19