BRIEF EXERCISE $4-3$ Compute the Predetermined Overhead Rate CDO

Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labour hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $$134\mathrm{.}000$ and the total direct labour would be $20,000$ hours. Its actual total manufacturing overhead for the year was $$123\mathrm{.}900,$ and its actual total direct labour was $21\mathrm{.}000$ hours.

Required:

Compute the company's predetermined overhead rate for the year.

BRIEF EXERCISE $4-4$ Prepare Journal Entries $($CC$12)$

Larned Corporation recorded the following transactions for the past month:

a$.$ $$80,000$ in raw materials were purchased on account.

b$.$ $$71\mathrm{.}000$ in raw materials were requisitioned for use in production. Of this amount. $$62\mathrm{.}000$ was for direct materials and the remainder was for indirect materials.

c$.$ Total labour wages of $$112,000$ were incurred. Of this amount, $$101,000$ was for direct labour and the remainder was for indirect labo: :

d$.$ Additional manufacturing overhead costs of $$175\mathrm{.}000$ were incurred.