Answer:
Results are below.
Explanation:
Giving the following information:
1st Quarter 2nd Quarter 3rd Quarter 4th
Quarter Budgeted direct labor-hours 9,200 8,800 9,100 9,500
The variable portion of its predetermined manufacturing overhead rate is $3.50 per direct labor hour.
Total fixed manufacturing overhead= $60,000
<u>First, we need to calculate the total variable and fixed overhead for the year:</u>
Total variable overhead= (9,200 + 8,800 + 9,100 + 9,500)*3.5= $128,100
Total fixed overhead= 60,000*4= $240,000
Total budgeted overhead= $368,100
<u>Now, the predetermined overhead rate:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (240,000 / 36,600) + 3.5
Predetermined manufacturing overhead rate= $10.06 per direct labor hour