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Answer:
Estimated manufacturing overhead rate= $1.75 per direct labor dollar
Explanation:
Giving the following information:
The estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $3,150,000, and total direct labor costs would be $1,800,000.
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= 3,150,000/1,800,000= $1.75 per direct labor dollar
The answer is Estimated manufacturing overhead rate is = $1.75 per direct labor dollar
When Giving the following information are:
- When The estimated total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $3,150,000, and also the total direct labor costs would be $1,800,000.
- Then To calculate the estimated manufacturing overhead rate we need to use the following formula are:
- After that Estimated manufacturing overhead rate is = total estimated overhead costs for the period/ total amount of allocation base
- Then Estimated manufacturing overhead rate is = 3,150,000/1,800,000= $1.75 per direct labor dollar.
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