Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Answer:
Predetermined manufacturing overhead rate= $18 per direct labor hour
Explanation:
First, we need to calculate the estimated overhead cost for the period:
Estimated overhead cost= Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Estimated overhead cost= 91,000 + 250,000 + 40,000 + 15,000
Estimated overhead cost= $396,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 396,000 / (550,000/25)
Predetermined manufacturing overhead rate= 396,000 / 22,000
Predetermined manufacturing overhead rate= $18 per direct labor hour
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.