Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, It estimated 29,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $578,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor- hour. Harris's actual manufacturing overhead cost for the year was $722,191 and its actual total direct labor was 29,500 hours. Required: Compute the company's plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate por DLH
Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, It estimated 29,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $578,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor- hour. Harris's actual manufacturing overhead cost for the year was $722,191 and its actual total direct labor was 29,500 hours. Required: Compute the company's plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate por DLH
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours. At the beginning of the year,
It estimated 29,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated
$578,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-
hour. Harris's actual manufacturing overhead cost for the year was $722,191 and its actual total direct labor was 29,500 hours.
Required:
Compute the company's plantwide predetermined overhead rate.
Note: Round your answer to 2 decimal places.
Predetermined overhead rate
por DLH
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