jameson estimates that 20,000 direct labor-hours will be worked during the year. the predetermined overhead rate per hour will be:

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Business

Cheyenne Shah

5 August, 13:49

jameson estimates that 20,000 direct labor-hours will be worked during the year. the predetermined overhead rate per hour will be:

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Answers (1)

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Thalia Wiley · Answer 1

Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

Explanation:

Giving the following information:

Jameson estimates that 20,000 direct labor-hours will be worked during the year.

We were not provided eith enough information to calculate the estimated manufacturing overhead, but I will provide with the formula and a small example:

Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

For example:

Estimated overhead for the period = $150,000

Direct labor hours = 20,000

Estimated manufacturing overhead rate = 150,000/20,000 = $7.5 per direct labor hour