Hanna Co. computes its predetermined overhead rate annually on the basis of direct labour-hours. At the beginning of the year, it is estimated that its total manufacturing overhead would be $586,000 and the total direct labour would be 40,000 hours. Its actual total manufacturing overhead for the year was $713,400 and its total direct labour was 41,000 hours. Compute the company's predetermined overhead rate for the year.
Hanna Co. computes its predetermined overhead rate annually on the basis of direct labour-hours. At the beginning of the year, it is estimated that its total manufacturing overhead would be $586,000 and the total direct labour would be 40,000 hours. Its actual total manufacturing overhead for the year was $713,400 and its total direct labour was 41,000 hours. Compute the company's predetermined overhead rate for the year.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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