Wasatch Company anticipates that they will incur the following costs and expenses during the coming year:
If manufacturing overhead is assigned on the basis of direct labor hours, what is the predetermined manufacturing overhead rate for the coming year?

Question

Wasatch Company anticipates that they will incur the following costs and expenses during the coming year:
 If manufacturing overhead is assigned on the basis of direct labor hours, what is the predetermined manufacturing overhead rate for the coming year?

Quizplus · Accepted Answer

$77,000/$11 = 7,000 direct labor hours
$10,000 + $12,000 + $25,000 + $17,000 = $64,000 total factory overhead
$64,000/7,000 = $9.14 per direct labor hour

Wasatch Company Anticipates That They Will Incur the Following Costs