Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated Direct labor hours= 6,250
Estimated Machine hours= 4,375
We weren't provided with the estimated manufacturing overhead for the period. But, with an example, I can guide the answer.
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
For example:
Estimated overhead for the period= $275,000
For Direct labor hours:
Estimated manufacturing overhead rate= 275,000/6,250= $44 per direct labor hours
For Machine-hours:
Estimated manufacturing overhead rate= 275,000/4,375= $62.86 per machine hour
