Activity Base Data Estimated number of DLH for the year 6,250 Estimated number of MH for the year 4,375 Compute the predetermined factory overhead rate for the current year.

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

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