Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the upcoming year: The company estimates that 2280 direct labor hours will be worked in the upcoming year, while 1900 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour will be

Question

Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the upcoming year:  The company estimates that 2280 direct labor hours will be worked in the upcoming year, while 1900 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour will be

Quizplus · Accepted Answer

To calculate the predetermined manufacturing overhead rate per direct labor hour, we need to divide the estimated manufacturing overhead costs by the estimated direct labor hours.
$69,600 ÷ 2280 = $30.70 per direct labor hour

Bob Burgers Allocates Manufacturing Overhead to Jobs Based on Direct