The predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour....

Free

70.2K

Verified Solution

Question

Accounting

The predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour. Employees are expected to earn$8.00 per hour and the company is planning on paying its employees$290,000 during the year. However, only 80% of the employees areclassified as "direct labor." What was the estimated manufacturingoverhead for 2016?

Answer & Explanation Solved by verified expert

4.1 Ratings (685 Votes)

Estimated manufacturing overhead = $ 145,000 calculated as below

A	Amount to be paid to employees [direct + indirect]	$ 290,000.00
B	Rate per hour	$ 8.00
C = A/B	Total no. of labor hours	36,250
D	% of direct labor hour	80%
E = C x D	No. of direct labor hour	29,000
F	Predetermined Overhead rate	$ 5.00
G = E x F	Estimated Manufacturing Overhead for 2016 = Answer	$ 145,000.00

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingThe predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour. Employees...The predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour. Employees are expected to earn$8.00 per hour and the company is planning on paying its employees$290,000 during the year. However, only 80% of the employees areclassified as "direct labor." What was the estimated manufacturingoverhead for 2016?