Answer:
Estimated manufacturing overhead rate= $30 per direct labor hour
Explanation:
Giving the following information:
Indirect labor= $2,400,000
Factories utility= $900,000
Total overhead= 3,300,000
Direct labor hours= 110,000
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= 3,300,000/110,000= $30 per direct labor hour
