Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the be
Posted: Sat Feb 19, 2022 2:34 pm
Harris Fabrics computes its plantwide predetermined overhead
rate annually on the basis of direct labor-hours. At the beginning
of the year, it estimated that 40,000 direct labor-hours would be
required for the period’s estimated level of production. The
company also estimated $544,000 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of
$2.00 per direct labor-hour. Harris’s actual manufacturing overhead
cost for the year was $700,650 and its actual total direct labor
was 40,500 hours.
Required: Compute the company’s plantwide predetermined overhead
rate for the year. (Round your answer to 2 decimal places.)
rate annually on the basis of direct labor-hours. At the beginning
of the year, it estimated that 40,000 direct labor-hours would be
required for the period’s estimated level of production. The
company also estimated $544,000 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of
$2.00 per direct labor-hour. Harris’s actual manufacturing overhead
cost for the year was $700,650 and its actual total direct labor
was 40,500 hours.
Required: Compute the company’s plantwide predetermined overhead
rate for the year. (Round your answer to 2 decimal places.)