Ask Question
18 November, 09:31

ohansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:

+1
Answers (1)
  1. 18 November, 09:56
    0
    Predetermined 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 weren't provided with enough information to solve the problem. But, I will provide the formula and a small example.

    To calculate the predetermined manufacturing overhead rate we need to use the following formula:

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

    Imagine the total estimated overhead costs is $1,500,000.

    Predetermined manufacturing overhead rate = 1,500,000/20,000

    Predetermined manufacturing overhead rate = $75 per direct labor hour
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “ohansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers