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The predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour....

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Accounting

The predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour. Employees are expected to earn$8.00 per hour and the company is planning on paying its employees$290,000 during the year. However, only 80% of the employees areclassified as "direct labor." What was the estimated manufacturingoverhead for 2016?

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Estimated manufacturing overhead = $ 145,000 calculated as below

A Amount to be paid to employees [direct + indirect] $                                 290,000.00
B Rate per hour $                                              8.00
C = A/B Total no. of labor hours                                             36,250
D % of direct labor hour 80%
E = C x D No. of direct labor hour                                             29,000
F Predetermined Overhead rate $                                              5.00
G = E x F Estimated Manufacturing Overhead for 2016 = Answer $                                 145,000.00

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In: AccountingThe predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour. Employees...The predetermined overhead rate for manufacturing overhead for2016 is $5.00 per direct labor hour. Employees are expected to earn$8.00 per hour and the company is planning on paying its employees$290,000 during the year. However, only 80% of the employees areclassified as "direct labor." What was the estimated manufacturingoverhead for 2016?

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