The cost allocation base is direct labor hours (DLH) Total estimated manufacturing overhead costs = $1,000,000

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The cost allocation base is direct labor hours (DLH)

∙ Total estimated manufacturing overhead costs = $1,000,000

∙ Total estimated direct labor hours for the year = 62,500 DLHs

∙ Job #603 actually used 500 DLHs for the year

What does Life Fitness’s predetermined manufacturing overhead rate ( PMOHR ) based on direct labor cost?

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Posted Date: Aug 17, 2022 10:30 PM

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The cost allocation base is direct labor hours (DLH) Total estimated manufacturing overhead costs = $1,000,000

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