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.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, including indirect labor, materials, and other expenses.

Direct Labor Hours

The sum of hours dedicated by employees directly linked to producing products or offering services.