Answer:
Estimated manufacturing overhead rate= $19 per direct labor hour
Explanation:
Giving the following information:
Computer parts= 1,000 units
Keyboards= 1,200
Computer parts require 3 direct labor hours per unit
Keyboards require 2.5 direct labor hours per unit.
The total estimated overhead for the period is $114,000.
The allocation base is direct labor hours. First, we need to calculate the total amount of direct labor hours.
Direct labor hours= total units per product*unitary direct labor hour required
Direct labor hour= 1,000*3 + 1,200*2.5= 6,000 direct labor hours
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 114,000/ 6,000= $19 per direct labor hour
