Question

X Company has the following estimated costs for 2020: Direct materials Direct labor Factory supplies Factory maintenance Advertising Factory rent Sales salaries Factory insurance $57,500 23,800 20,500 30,000 41,900 46,000 43,000 58,000 X Company estimates that direct labor hours for the year will be 1,700, and machines will be operated for 65,000 hours. If overhead is allocated on the basis of direct labor cost, what will the 2020 overhead rate be? Submit Answer Tries 0/3

Answer 1

Overhead rate= 649.16% of 649%

Working

(A)	Budgeted Manufacturing Overheads [see below}	$ 154,500
(B)	Budgeted Direct labor cost	23,800
C= (A/B)	Predetermined Overhead rate	649.16%

.

Factory supplies	$      20,500.00
Factory maintenance	$      30,000.00
Factory rent	$      46,000.00
Factory insurance	$      58,000.00
Total Estimated overhead	$    154,500.00