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The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis.

Table Top $ 1,700.00

Table Leg $ 500.00

Drawer $ 370.00

Assume a $35 per hour wage rate to the assembly employees.

The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours.

The company estimates that there will be 12 direct labor hours worked during the month.

The estimated manufacturing overhead cost for the month is:

a. Factory supervisor salary per month $ 3,500.00

b. Rent for the factory per month $ 1,300.00

c. Depreciation of factory equipment per month $ 600.00

Total Estimated manufacturing overhead $ 5,400.00

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Q: What is the predetermined manufacturing overhead rate?
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Related questions

When is the Predetermined overhead rate usually calculated?

The predetermined overhead rate used to apply overhead to finished jobs is determined before the period begins.


How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?

Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.


How do you calculate total manufacturing cost?

Weaver Company's predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour.


What would a plantwide manufacturing overhead rate be assigned to?

what is plantwide manufacturing overhead


What is the advantage of using a predetermined overhead application rate?

RUNOVER


Definition of a predetermined overhead rate?

Predetermined overhead rate is that overhead rate calculated before start of production to allocate overhead costs to units of products by using some ratio in relation to some other cost like material cost or labor cost or labor hours etc.


Manufacturing overhead - fixed or variable cost?

Compute the actual and budgeted manufacturing overhead rate


Does the predetermined overhead rate change in proportion to the change in predicted production Overhead rate 100000 at .10 a unit. Outputs One group- 20000 units one at 300000 one at 400000?

Predetermined overhead rate is calculated according to the normal production capacity of the plant.


What is the predetermined cost?

Predetermined rate is overhead rate allocated to product cost to find out the full product cost and it is an estimated rate based on total expected overhead on normal capacity divided by some machine hours or direct labor hours etc.


How do I compute predetermined overhead rate as a percentage of direct labor costs?

Predetermined overhead rate = Est. total Manuf. Overhead Cost / Est. total amt of allocation base In this case, allocation base would be direct labor (as opposed to machine labor). Hope this helps


Why do you need applied overhead rate?

We need applied overhead rate to know about the overhead variance. Otherwise how will we know how much overhead expenses should have been incurred and how much is actually incurred? Predetermined rate multiplied by the actual unit level activity is applied overhead


Why do companies use a predetermined overhead rate rather than actual overhead costs to apply overhead to jobs?

because they have no life, also they predetmined pigs