Total estimated overhead costs should be divided by actual direct labor hours to compute an overhead rate per direct labor hour.

Name: Total estimated overhead costs should be divided by actual direct labor hours to compute an overhead rate per direct labor hour.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The overhead rate per direct labor hour is computed by dividing total estimated overhead costs by estimated direct labor hours, not actual direct labor hours.

Total Estimated Overhead Costs Should Be Divided by Actual Direct