Answer:
Estimated Manufacturing Overhead for 2016 is $145,000
Explanation:
given data
overhead rate = $5.00 per direct labor hour
expected to earn = $8.00 per hour
paying employees = $290,000
direct labor = 80%
to find out
estimated manufacturing overhead
solution
we know here total number of labor hours will be =
total number of labor hours =
total number of labor hours = 36,250
so
Number of direct labor hour = 80% of 36,250
Number of direct labor hour = 29,000
so
Estimated Manufacturing Overhead for 2016 is = Number of direct labor hour × overhead rate
Estimated Manufacturing Overhead for 2016 is = 29,000 × 5
Estimated Manufacturing Overhead for 2016 is = $145,000