Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 35,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $525,000 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 $656,750 and its actual total direct labor was 35,500 hours. Required: Compute the company's plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate per DLH
Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 35,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $525,000 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 $656,750 and its actual total direct labor was 35,500 hours. Required: Compute the company's plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate per DLH
Chapter1: Financial Statements And Business Decisions
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Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours. At the beginning of the year,
it estimated 35,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated
$525,000 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 $656,750 and its actual total direct labor was 35,500 hours.
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Required:
Compute the company's plantwide predetermined overhead rate.
Note: Round your answer to 2 decimal places.
Predetermined overhead rate
per DLH
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