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The following production estimates were made for the coming year: Total quilts to be produced 20,000 Total manufacturing hours available per laborer 2,000 Total direct
The following production estimates were made for the coming year: Total quilts to be produced 20,000 Total manufacturing hours available per laborer 2,000 Total direct laborers 3 Total direct labor hours 6,000 The following cost estimates were available at the beginning of the year. Use these estimates to determine total estimated manufacturing overhead during the year: Amount Estimate for Year Production supervisor's salary per week (use 52 weeks in a year) $ 1,000 Monthly rent 595 Utilities expense per quarter 595 Cost per pencil (useful life of each pencil is 20 hours) Cost per scissors (useful life of each pair of scissors is 80 hours) 103 Cost per ruler (usefule life of each ruler is 50 hours) 54 Cost of glue (per quilt) 0.54 Total Estimated Manufacturing Overhead B. Calculate the Predetermined Overhead (PDOH) rate using direct labor hours (DLH) as the cost driver during the year to allocate manufacturing overhead to jobs and Work In Process Inventory: PDOH= per DLH
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