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Webber Fabricating estimated the following annual costs: Expected annual direct labor hours 44,200 and expected annual direct labor cost $628,000 and expected machine hours of 24,900, expected material cost for the year $807,300 and expected mfg overhead $1,015,000Calculate overhead allocation rates…
Direct labor hours 1,015,000/44,200= 22.964 per hour Direct labor cost 1,015,000/628,000 1.616 per $ of direct labor cost Machine hours…

= 40.763 per machine hour Direct material cost 1,015,000/807,300= 1.257 per $ of direct material cost

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