Final answer:
To calculate the predetermined overhead rate per direct labor hour, divide the total estimated overhead costs by the total estimated direct labor hours.
Step-by-step explanation:
To calculate the predetermined overhead rate per direct labor hour, we need to divide the total estimated overhead costs by the total estimated direct labor hours. The predetermined overhead rate per direct labor hour can be calculated using the following formula:
Predetermined overhead rate per direct labor hour = Total estimated overhead costs / Total estimated direct labor hours
For example, if the total estimated overhead costs are $15,000 and the total estimated direct labor hours are 1,500, the predetermined overhead rate per direct labor hour would be $10 ($15,000 / 1,500 hours).