## Predetermined overhead rate per hour

How to Figure Out the Predetermined Overhead Rate Per Direct Labor Hour. by Isobel Phillips. Direct and indirect labor must be differentiated to calculate the  Further, the company uses direct labor hours to assign manufacturing overhead costs to products. As per the budget, the company will require 150,000 direct labor

## The predetermined overhead rate per hour will be: Multiple Choice. \$4.25. \$8.00. \$9.00. \$10.25. Laflame Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

### 9. Paulson Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the

Predetermined Overhead Rate Definition. A company uses a predetermined overhead rate to allocate overhead costs to the costs of products.Indirect costs are estimated, a cost driver is selected, cost driver activity is estimated, and then indirect costs are applied to production output based on a formula using these data. Predetermined Overhead Rate Example Overhead costs are indirect costs of production. The overhead application rate, also called the predetermined overhead rate, is often used in cost and managerial accounting for calculating variances. The basic formula to calculate the overhead application rate is to divide the budgeted overhead at a particular rate of