Unformatted text preview: step of the process take more people more time to accomplish to make up for the missing workers. This could then lead to a decrease in production and increase in cost for the products. 4. Predetermined overhead = estimated manufacturing overhead . estimated quantity of the allocation base = 2,475,000 50,000 = $49.50 per direct labor hour By only reducing labor by 2,000 – 1 worker instead of 6,000 the change in expense of the dollars per direct labor hour would be better for the company and cost them less money per direct labor hour. However, it still appears that the predetermined overhead after the installment of the new machines is still going to rise from the previous $47.60 per direct labor hour cost that was obtained before the installment of the new machines....
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- Fall '07
- Financial Accounting, 200 m, M. McCourt, $49.50, $47.60, $53.80