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Dafna11 [192]
2 years ago
11

Haynes Automotive uses labor-hours as its base for calculating a predetermined overhead rate. Haynes had estimated the labor-hou

rs for the year at 46,000 labor-hours. The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260. The actual labor-hours for the year turned out to be 41,200. What was the predetermined overhead rate
Business
1 answer:
julia-pushkina [17]2 years ago
3 0

Based on the information given the predetermined overhead rate is 31.89 per direct labor hour.

<h3>Predetermined overhead rate</h3>

Using this formula

Predetermined Overhead rate = Estimated manufacturing overhead / Estimated total labor hours

Let plug in the formula

Predetermined Overhead rate = [$1,026,260 + (46,000×6.25)] / 41,200

Predetermined Overhead rate =1,313,760/ 41,200

Predetermined Overhead rate = 31.89 per direct labor hour

Inconclusion the predetermined overhead rate is 31.89 per direct labor hour.

Learn more about predetermined overhead rate here:brainly.com/question/26372929

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