Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the
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Question:
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 35,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $567,000 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 $702,900 and its actual total direct labor was 35,500 hours.
Required:
Compute the company's plantwide predetermined overhead rate for the year.
Note: Round your answer to 2 decimal places.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date: