Acme,Inc.has estimated overhead to be $300,000 and labor hours to be 30,000.Actual overhead turned out to be $310,000 when 30,500 labor hours were worked.The predetermined overhead rate would be:

Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the estimated overhead by the estimated labor hours: $300,000 / 30,000 hours = $10.00 per labor hour.

Acme,Inchas Estimated Overhead to Be $300,000 and Labor Hours to Be