Answer:
Instructions are listed below.
Explanation:
Giving the following information:
There is one formula to calculate the estimated manufacturing overhead rate. It is the following:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Total estimated overhead= $500,000
Allocation base= direct labor hours
Total direct labor hours= 50,000
Estimated manufacturing overhead rate= 500,000/50,000= $10 per direct labor hours
