Adams Manufacturing has estimated manufacturing overhead at $72,000 and has estimated direct labor of 10,000 direct labor hours at $9.00 per hour.The overhead rate per direct labor dollar would be:

Question

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Overhead rate per direct labor dollar = Manufacturing overhead / (Direct labor hours * Direct labor rate per hour)= $72,000 / (10,000 * $9.00)= $72,000 / $90,000= $0.80

Adams Manufacturing Has Estimated Manufacturing Overhead at $72,000 and Has