Baker Manufacturing has estimated manufacturing overhead at $133,000 and has estimated direct labor of 10,000 direct labor hours at $19 per hour. The overhead rate per direct labor dollar would be: (Round your answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The overhead rate per direct labor dollar is calculated by dividing the estimated manufacturing overhead by the total estimated direct labor cost. Total estimated direct labor cost is 10,000 hours * $19/hour = $190,000. Therefore, the overhead rate is $133,000 / $190,000 = $0.70 per direct labor dollar.

Baker Manufacturing Has Estimated Manufacturing Overhead at $133,000 and Has