Homework Answers
Predetermined overhead rate = $18 per direct labor hour
Direct labor cost = $100
direct labor rate = $10 per hour
Direct labor hours = Direct labor cost / direct labor rate
= 100/10
= 10
Applied overhead = Direct labor hours x Predetermined overhead rate
= 10 x 18
= $180
total manufacturing cost = direct materials + Direct labor + Overhead
= 220+100+180
= $500
Units product cost = Total manufacturing cost / Number of units
= 500/50
= $10
| Total manufacturing cost | $550 |
| $10 per unit |
Predetermined overhead rate = $23.80 per direct labor hour
Actual direct labor hours = 10,700
Manufacturing overhead applied = Actual direct labor hours x Predetermined overhead rate
= 10,700 x 23.80
= $254,660
| Manufacturing overhead applied | $254,660 |
Estimated direct labor hours = 38,000
fixed manufacturing overhead = $589,000
Variable manufacturing overhead per direct labor hour = $3
Predetermined overhead rate = fixed manufacturing overhead/Estimated direct labor hours + Variable manufacturing overhead per direct labor hour
= 589,000/38,000 + 3
= 15.5+3
= $18.5 per direct labor hour
| Predetermined overhead rate | $18.5 per DLH |
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