Question

Saved Help Save & Ext A company bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 50,000 labor-hours. The estimated variable manufacturing overhead was $10.50 per labor-hour and the estimated total fixed manufacturing overhead was $880,000. The actual labor-hours for the year turned out to be 53,600 labor-hours. Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.) Predetermined overhead rate per labor-hour

Answer 1

Predetermine overhead rate = estimated overhead/estimated machine hour

= (880000/50000)+10.50

Predetermine overhead rate= 28.10 per DLH