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.

Principles of Accounting Volume 2
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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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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.
Transcribed Image Text: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.
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