Question

Estimated manufacturing overhead for the year $30,000 Estimated direct labor hours for the year 2,000 Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What is the predetermined manufacturing overhead rate per direct labor hour for the year

Answer 1

$15.00 per direct labor hour

Step-by-step explanation:

predetermined manufacturing overhead rate = Budgeted overheads ÷ Budgeted Activity

= $30,000 ÷ 2,000 hours

= $15.00

thus,

The predetermined manufacturing overhead rate per direct labor hour for the year is $15.00 per direct labor hour