Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour.

Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,000 per month. The $25,000 per month includes $7,000 in depreciation expense. Total budgeted direct labor-hours for the month of July is 20,000. Based on the month of July only, the predetermined overhead rate is $ (Enter your answer as a number rounded to 2 decimal places.)

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Fixed overhead rate per hour =$25000/20000 hrs
=$1.25

Predetermined overhead rate = fixed overhead rate + variable overhead rate
=$5+1.25
=6.25

ekkarill92 answered 1 year ago

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