Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,actual labor hours were 21,000.The predetermined overhead rate would be

Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the estimated manufacturing overhead by the estimated direct labor hours: $200,000 / 20,000 hours = $10.00 per hour.

Manufacturing Overhead Was Estimated to Be $200,000 for the Year