Ask Question
25 July, 19:54

Roget Factory has budgeted factory overhead for the year at $4,992,000. It plans to produce 2,000,000 units of product. Budgeted direct labor hours are 480,000, and budgeted machine hours are 750,000. Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is

+2
Answers (1)
  1. 25 July, 22:15
    0
    Estimated manufacturing overhead rate = $10.4 per direct labor hour.

    Explanation:

    Giving the following information:

    Roget Factory has budgeted factory overhead for the year at $4,992,000.

    Budgeted direct labor hours are 480,000.

    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 = 4,992,000/480,000

    Estimated manufacturing overhead rate = $10.4 per direct labor hour.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Roget Factory has budgeted factory overhead for the year at $4,992,000. It plans to produce 2,000,000 units of product. Budgeted direct ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers