Bart Corp uses a normal job-order costing system with overhead applied plantwide to products on the basis of direct labor hours. For the upcoming year, Bart Corp estimated total fixed manufacturing overhead cost at $100,000 total estimated manufacturing overhead per unit of $3 per direct labor hour, and total direct labor hours of 50,000.
A.Calculate the Predetermined rate for Bart Corp.
B. Calculate the Estimated Total Manufacturing Overhead for Bart Corp.
Total fixed manufacturing overhead = $100,000
Estimated manufacturing overhead rate = $3 per direct labor hours
Estimated direct labor hours = 50,000
Predetermined overhead rate = Estimated manufacturing overhead rate
= $3 per direct labor hours
The Predetermined rate for Bart Corp.= $3 per direct labor hours
Estimated total manufacturing overhead = Estimated direct labor hours x Predetermined overhead rate
= 50,000 x 3
The Estimated Total Manufacturing Overhead for Bart Corp = $150,000
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