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Estimated manufacturing overhead$450,000Estimated direct labor hours150,000Actual manufacturing overhead$405,000Actual direct labor hours180,000 Based on this information, the predetermined overhead rate per direct labor hour is $. (Enter your answer as a whole number.)

Question

Estimated manufacturing overhead450,000Estimateddirectlaborhours150,000Actualmanufacturingoverhead450,000Estimated direct labor hours150,000Actual manufacturing overhead405,000Actual direct labor hours180,000 Based on this information, the predetermined overhead rate per direct labor hour is $. (Enter your answer as a whole number.)

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Solution

The predetermined overhead rate is calculated by dividing the estimated manufacturing overhead by the estimated direct labor hours.

Here are the steps to calculate it:

  1. Identify the estimated manufacturing overhead. From the information given, the estimated manufacturing overhead is $450,000.

  2. Identify the estimated direct labor hours. From the information given, the estimated direct labor hours are 150,000 hours.

  3. Divide the estimated manufacturing overhead by the estimated direct labor hours to get the predetermined overhead rate per direct labor hour.

So, 450,000/150,000hours=450,000 / 150,000 hours = 3 per direct labor hour.

Therefore, the predetermined overhead rate per direct labor hour is $3.

This problem has been solved

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