The predetermined manufacturing overhead rate for 2020 was $3.00 per direct labor hour; employees were paid $5.00 per hour. If the estimated direct labor cost was $81,000, what was the estimated manufacturing overhead

Respuesta :

The answer is $48,600.

Given,

The predetermined manufacturing overhead rate for 2020 = $3.00 per direct labor hour

employees paid = $5.00 per hour

the estimated direct labor cost = $81,000

the total direct labor hours = estimated direct labour cost / employees paid

Now, sustituting the given values in the above formula we get,

total direct labor hours = 81,000 /5

                                       =  16,200 hours.

the estimated manufacturing overhead = predetermined manufacturing overhead rate × total direct labor hours

Now, substituting the values of given values and calculated values in the formula, we get,

estimated manufacturing overhead  = 3 x 16.200

                                                              = $ 48,600.

Hence, for the given case,  the estimated manufacturing overhead is $48,600.

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