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14 Dec 2017
EXERCISE 3-1 Compute the Predetermined Overhead Rate [LO3-1] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manu- facturing overhead expenses for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's predetermined overhead rate for the year.
EXERCISE 3-1 Compute the Predetermined Overhead Rate [LO3-1] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manu- facturing overhead expenses for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's predetermined overhead rate for the year.
27 Jun 2023
Bunny GreenfelderLv2
14 Dec 2017
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Related questions
Escatel Corporation bases its predetermined overhead rate on theestimated labor hours for the upcoming year. Data for the mostrecently completed year appear below.
Estimates made at the beginning of the year | ||
Estimated labor hours | 25,000 | |
Estimated variable manufacturing overhead | $7.10 | per labor hour |
Estimated total fixed manufacturing overhead | $625,000 | |
Actual labor hours for the year | 28,000 |
Required:
Compute the company's predetermined overhead rate for the recentlycompleted year.
