Help SaveExit Sulbi The 590000 of foxed d of 300 per cost fo

Help Save&Exit; Sulbi The $590,000 of foxed d of $3.00 per cost for the year was $781,239 and its actual total direct labor was 39,500 0.5 direct labor-hour. Harris\'s actual per DLH

Solution

The estimated total manufacturing overhead cost is computed as follows:

Y = $590,000 + ($3.00 per DLH)(39,000 DLHs)

Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor hours (DLHs) = $707,000 / 39,000 DLHs = $18.13 per DLH

Estimated fixed manufacturing overhead	$590,000
Estimated variable manufacturing overhead($3.00 per DLH × 39,000 DLHs)	$117,000
Estimated total manufacturing overhead cost	$707,000