Question
Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the
Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Knitting Supervisor wages $30,000 Estimated office utilities Estimated factory utilities Estimated factory rent Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 $3,000 $4,800 $24,000 Compute the predetermined factory overhead rate for the current year. $12.60 per DLH X
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