The predetermined manufacturing overhead rate for 2012 was $4.00 per direct labor hour;employees were paid $5.00 per hour.If the estimated direct labor cost was $75,000,what was the estimated manufacturing overhead?

Question

Quizplus · Accepted Answer

To find the estimated manufacturing overhead, we need to multiply the predetermined overhead rate by the estimated direct labor cost. 
Manufacturing overhead = predetermined overhead rate x direct labor hours 
= $4.00 per direct labor hour x 75,000 direct labor hours 
= $300,000 
Therefore, the estimated manufacturing overhead is $300,000.

The Predetermined Manufacturing Overhead Rate for 2012 Was $4