Jameson estimates that 20,000 direct labor-hours will be worked during the year. the predetermined overhead rate per hour will be:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Explanation:

Giving the following information:

Jameson estimates that 20,000 direct labor-hours will be worked during the year.

We were not provided eith enough information to calculate the estimated manufacturing overhead, but I will provide with the formula and a small example:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Estimated overhead for the period= $150,000

Direct labor hours= 20,000

Estimated manufacturing overhead rate= 150,000/20,000= $7.5 per direct labor hour

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