Final answer:
The overhead rate for Jean-Pierre, Inc. is calculated at $80 per direct labor hour by dividing the expected overhead costs of $144,000 by the expected direct labor hours of 1,800 for October 2022. This rate is used in managerial accounting for allocating manufacturing overhead to products based on the labor hours.
Step-by-step explanation:
The question involves the calculation of the manufacturing overhead rate which is a common topic in managerial accounting, a subdivision of the broader business and finance curriculums. To determine the overhead rate, we use the information given: the expected direct labor (DL) hours and the expected overhead for October 2022. The overhead rate is calculated by dividing the total expected overhead costs by the total expected direct labor hours:
Overhead Rate = Total Expected Overhead ÷ Total Expected DL Hours
Plugging in the values:
Overhead Rate = $144,000 ÷ 1,800 DL Hours = $80 per DL Hour
This rate can then be applied to actual DL hours incurred to allocate the overhead cost to the products manufactured during the period.