ACCT $230-$ Chapter $2$ Homework Templates

Chapter $2$ Homework Assignments: Exercises $1,2,3,4,7$ and $12$

Exercise $2-1$

Harris Fabrics comput$4$es its plantwide 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 estimat$4$ed $$94,000$ of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $$2\mathrm{.}00$ per direct labor hour. Harris's actual manufacturing overhead cost for the year was $$123,900$ and its actual total direct labor was $21,000$ hours.

Required: Compute the plantwide POR for the year:

The estimated total manufacturing overhead cost is computed as follows:

$\backslash$table$[[$Estimated fixed overhead per DLH $20,000$ DLHs$),$$$94,000$