What is the predetermined manufacturing overhead rate with given info Table Top 1700 Table Leg 500 Drawer 370 Assume a 35 per hour wage rate to the assembly employees The company uses a job order cost?

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2026-04-08 16:01

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To calculate the predetermined manufacturing overhead rate, you first need to determine the total estimated overhead costs and the total estimated direct labor hours. Assuming the total costs for Table Top, Table Leg, and Drawer are $1,700, $500, and $370 respectively, the total estimated overhead would be $2,570. If you know the total direct labor hours needed for production, you can divide the total estimated overhead by those hours. For example, if the total direct labor hours is 100 hours, the predetermined manufacturing overhead rate would be $2,570 / 100 = $25.70 per hour.

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