The Predetermined Overhead Rate for Manufacturing Overhead for 2008 Is

question 30

Multiple Choice

The predetermined overhead rate for manufacturing overhead for 2008 is $4.00 per direct labor hour.Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year.However,only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2008?

• A)$60,000
• B)$75,000
• C)$80,000
• D)$93,750

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Definitions:

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.

Job Cost Sheets

Documents that track the costs associated with specific jobs or orders, detailing labor, materials, and overhead expenses.

Work in Process Inventory

Goods that are in the production process but are not yet complete, representing a stage between raw materials and finished goods inventory.

Direct Materials

Ingredients essential to the production of a product, which can be directly linked to its manufacture and are integral to the completed item.