Adams Manufacturing has estimated manufacturing overhead at $125,000 and has estimated direct labor of 10,000 direct labor hours at $10.00 per hour.The overhead rate per direct labor dollar would be:

Question

Quizplus · Accepted Answer

To calculate the overhead rate per direct labor dollar, we need to divide the estimated overhead by the estimated direct labor cost.

Estimated direct labor cost = 10,000 direct labor hours * $10.00 per hour = $100,000

Overhead rate per direct labor dollar = $125,000 / $100,000 = $1.25

Therefore, the answer is (C) $1.25.

Adams Manufacturing Has Estimated Manufacturing Overhead at $125,000 and Has