Answers
Estimated direct labor hours = 38,000
Estimated fixed manufacturing overhead = $536,000
Estimated variable manufacturing overhead per direct labor hour = $2
plantwide predetermined overhead rate = Estimated variable manufacturing overhead per direct labor hour+ Estimated fixed manufacturing overhead/ Estimated direct labor hours
= 2+ 536,000/38,000
= 2+14.11
= $16.11 per direct labor hour
The company’s plantwide predetermined overhead rate for the year is $16.11 per direct labor hour.
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