value: 6.66 points Harris Fabrics computes its predetermined overhead rate annua

Question

value: 6.66 points Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 38,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $528,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour Hari's actual manufacturing overhead for the year was $715.897 and its actual total direct labor was 38,500 hours. Required: pute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal aces. per DLH Hints References eBook& Resources Hint#1

Explanation / Answer

Answer:

Predetermined Overhead Rate = Estimated Manufacturing Overhead / Estimated DLH
Estimated Manufacturing Overhead = Estimated Fixed Manufacturing Overhead + Estimated Variable Manufacturing Overhead
Estimated Manufacturing Overhead = $528,000 + ($3.00 * 38,000)
Estimated Manufacturing Overhead = $528,000 + $114,000
Estimated Manufacturing Overhead = $642,000

Predetermined Overhead Rate = 642,000 / 38,000
Predetermined Overhead Rate = $16.89 per DLH

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.