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15 August, 18:12

Marquis Company estimates that annual manufacturing overhead costs will be $809,000. Estimated annual operating activity bases are direct labor cost $494,000, direct labor hours 52,400, and machine hours 108,200.

Compute the predetermined overhead rate for each activity base.

Overhead rate per direct labor cost (Round answers to 2 decimal places, e. g. 110.10%.)

Marquis Company estimates that annual manufacturin

Overhead rate per direct labor hour (Round answers to 2 decimal places, e. g. $10.50.)

$Marquis Company estimates that annual manufacturin

Overhead rate per machine hour (Round answers to 2 decimal places, e. g. $10.50.)

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Answers (1)
  1. 15 August, 20:08
    0
    Instructions are listed below.

    Explanation:

    Giving the following information:

    Marquis Company estimates that annual manufacturing overhead costs will be $809,000. Estimated annual operating activity bases are direct labor cost $494,000, direct labor hours 52,400, and machine hours 108,200.

    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

    Direct labor:

    Estimated manufacturing overhead rate = 809,000/494,000 = $1.64 per direct labor dollar

    Direct labor hours:

    Estimated manufacturing overhead rate = 809,000/52,400 = $15.44 per direct labor hour

    Machine hours:

    Estimated manufacturing overhead rate = 809,000/108,200 = $7.48 per machine hour
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