Compute the Predetermined Overhead Rate [LO] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours.
Compute the company’s predetermined overhead rate for the year.
The predetermined overhead rate is computed as follows:
Round your answers to two decimal places. Include .00 if there are no cents.
Estimated total manufacturing overhead $ ____________
à·Estimated total direct labor hours (DLHs) ____________ DLHs
=Predetermined overhead rate $ ____________ per DLH
The predetermined overhead rate based on direct labor hours is calculated …
The solution explains how to calculate the predetermined overhead rate for Harris Fabrics.To continue with the answer check on mycoursewriter.com/
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