Martin Company Applies Manufacturing Overhead Based on Direct Labor Hours

Essay

Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: $\begin{array}{lr}\text { Actual manufacturing overhead } & \$ 150,000 \\\text { Estimated manufacturing overhead } & \$ 145,000 \\\text { Direct labor hours incurred } & 4,800 \\\text { Direct labor hours estimated } & 5,000\end{array}$ Instructions
Compute the predetermined overhead rate.