30 March, 17:02

Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the upcoming year:Direct materials used \$ 50 comma 100 Direct labor costs \$ 70 comma 700 Wages of factory janitors \$ 39 comma 900 Sales supervisor salary \$ 51 comma 500 Utilities for factory \$ 17 comma 000 Rent on factory building \$ 13 comma 900 Advertising expense \$ 5 comma 480 The company estimates that 2 comma 200 direct labor hours will be worked in the upcoming year, while 1 comma 700 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour will be (Round your answer to the nearest cent.) A.\$ 58.08.

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1. 30 March, 17:34
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The predetermined manufacturing overhead rate per direct labor hour will be \$32

Explanation:

The formula to compute the predetermined manufacturing overhead rate is shown below:

= (Estimated manufacturing overhead) : (Estimated direct labor hours)

where,

Estimated manufacturing overhead = Wages of factory janitors + Utilities for factory + Rent on factory building

= \$39,900 + \$17,000 + \$13,900

= \$70,800

And, the estimated direct labor hours is 2,200 machine hours

Now put these values to the above formula

So, the value would equal to

= \$70,800 : 2,200 machine hours

= \$32.18