Ask Question
23 June, 07:09

Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the upcoming year:Direct materials used $ 50 comma 100 Direct labor costs $ 70 comma 700 Wages of factory janitors $ 39 comma 900 Sales supervisor salary $ 51 comma 500 Utilities for factory $ 17 comma 000 Rent on factory building $ 13 comma 900 Advertising expense $ 5 comma 480 The company estimates that 2 comma 200 direct labor hours will be worked in the upcoming year, while 1 comma 700 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour will be (Round your answer to the nearest cent.) A.$ 58.08.

+4
Answers (1)
  1. 23 June, 08:52
    0
    The predetermined manufacturing overhead rate per direct labor hour will be $32

    Explanation:

    The formula to compute the predetermined manufacturing overhead rate is shown below:

    = (Estimated manufacturing overhead) : (Estimated direct labor hours)

    where,

    Estimated manufacturing overhead = Wages of factory janitors + Utilities for factory + Rent on factory building

    = $39,900 + $17,000 + $13,900

    = $70,800

    And, the estimated direct labor hours is 2,200 machine hours

    Now put these values to the above formula

    So, the value would equal to

    = $70,800 : 2,200 machine hours

    = $32.18
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers