Ask Question
15 September, 20:01

Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $ 306 comma 000. The total estimated direct labor hours and machine hours for the coming year are 8 comma 000 and 13 comma 000 , respectively. Manufacturing overhead costs are allocated based on direct labor hours. What is the predetermined overhead allocation rate?

+1
Answers (1)
  1. 15 September, 23:50
    0
    Estimated manufacturing overhead rate = $38.25 per direct labor hour

    Explanation:

    Giving the following information:

    Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $306,000. The total estimated direct labor hours for the coming year are 8,000

    To calculate the estimated manufacturing overhead rate we need to use the following formula:

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

    Estimated manufacturing overhead rate = 306,000/8,000 = $38.25 per direct labor hour
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $ 306 comma 000. The total estimated direct labor ...” 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