Answered

Find answers to your questions and expand your knowledge with IDNLearn.com. Our community is here to provide the comprehensive and accurate answers you need to make informed decisions.

g widgets inc plans to produce 8000 widgets during the upcoming year. each widget requires four direct labor hours at 25 per hour and 110 in direct material costs .... compute the predetermined overhead rate per direct labor hour

Sagot :

Facundobuzzettiidn

Answer:

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

Explanation:

Giving the following information:

Production= 8,000 units

Direct labor hours= 4*8,000= 32,000 hours

To calculate the predetermined overhead rate, we need the estimated overhead costs. We don't have the number, but I will provide a fake number, and determine the overhead rate.

Estimated overhead costs= $1,500,000

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

Predetermined manufacturing overhead rate= 1,500,000 / 32,000

Predetermined manufacturing overhead rate= $46.875 per direct labor hour

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Thank you for visiting IDNLearn.com. We’re here to provide accurate and reliable answers, so visit us again soon.