Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: $\begin{array}{lr}
\text { Actual manufacturing overhead } & \$ 150,000 \
\text { Estimated manufacturing overhead } & \$ 145,000 \
\text { Direct labor hours incurred } & 4,800 \
\text { Direct labor hours estimated } & 5,000
\end{array}$ Instructions
Compute the predetermined overhead rate.

Question

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The Answer of Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: $\begin{array}{lr}
\text { Actual manufacturing overhead } & \$ 150,000 \
\text { Estimated manufacturing overhead } & \$ 145,000 \
\text { Direct labor hours incurred } & 4,800 \
\text { Direct labor hours estimated } & 5,000
\end{array}$ Instructions
Compute the predetermined overhead rate.

Martin Company Applies Manufacturing Overhead Based on Direct Labor Hours