The predetermined manufacturing overhead rate for 2010 was $4.00 per direct labor hour; employees were paid $5.00 per hour.If the estimated direct labor cost was $75,000,what was the estimated manufacturing overhead?
A)$15,000
B)$60,000
C)$75,000
D)$93,750

Question

Quizplus · Accepted Answer

To calculate the estimated manufacturing overhead cost, we need to use the predetermined manufacturing overhead rate per direct labor hour. 
Predetermined manufacturing overhead rate = Total estimated manufacturing overhead cost / Total estimated direct labor hours

From the given information, we know that the predetermined manufacturing overhead rate for 2010 was $4.00 per direct labor hour. 
So, Total estimated manufacturing overhead cost = Predetermined manufacturing overhead rate x Total estimated direct labor hours 
= $4.00 x 75,000 = $300,000

Therefore, the estimated manufacturing overhead cost is $300,000, which means option B is the correct answer.

The Predetermined Manufacturing Overhead Rate for 2010 Was $4