Question

need help please

The predetermined manufacturing overhead rate for 2020 was $4.00 per direct labor hour, employees were paid $5.00 per hour. If the estimated direct labor cost was $80,000, what was the estimated manufacturing overhead? Multiple Choice $16.000 $64.000 $80,000

Answer 1

1 Total Direct Labor Hour = Estimated Direct Labor cost / Direct Labor rate Total Direct Labor Hour = $ 80000 / $ 5 Total Direct Labor Hour = 16000 hours Estimated Manufacturing Overhead = 16000 hours * $ 4 Estimated Manufacturing Overhead = $ 64000 Answer is --------- --> Option B --> $ 64000 2 Given Situation the equation is as follows: Manufacturing overhead = 50% ( direct material) Direct material Manufacturing overhead / 50 % Direct material = 185000 / 50% Direct material = $ 370000 Answer is --> Option C -----> $ 370000

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