Sylvan Manufacturing applies overhead based on direct labor hours.At the beginning of the year,it estimated that overhead costs would be $75,000 and direct labor hours would be 10,000.The applied overhead rate per direct labor hour is:

Question

Quizplus · Accepted Answer

The applied overhead rate per direct labor hour is calculated by dividing the estimated overhead costs by the estimated direct labor hours. Therefore, $75,000 / 10,000 hours = $7.50 per direct labor hour.

Sylvan Manufacturing Applies Overhead Based on Direct Labor Hours