Answer:
Predetermined manufacturing overhead rate= $33.33 per direct labor hour
Explanation:
Giving the following information:
Next year, the company anticipates total overhead costs of $2.5 million.
Estimated direct labor hours= 75,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,500,000/75,000