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21 February, 00:48

jameson estimates that 20,000 direct labor-hours will be worked during the year. the predetermined overhead rate per hour will be:

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  1. 21 February, 01:14
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    Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

    Explanation:

    Giving the following information:

    Jameson estimates that 20,000 direct labor-hours will be worked during the year.

    We were not provided eith enough information to calculate the estimated manufacturing overhead, but I will provide with the formula and a small example:

    Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

    For example:

    Estimated overhead for the period = $150,000

    Direct labor hours = 20,000

    Estimated manufacturing overhead rate = 150,000/20,000 = $7.5 per direct labor hour
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