Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of th year, it estimated that 39,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $511,000 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 $661,726 and its actual total direct labor was 39,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of th year, it estimated that 39,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $511,000 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 $661,726 and its actual total direct labor was 39,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 2-1 (Algo) Compute a Predetermined Overhead Rate [LO2-1]
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the
year, it estimated that 39,000 direct labor-hours would be required for the period's estimated level of production. The company also
estimated $511,000 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 $661,726 and its actual total direct labor was 39,500
hours.
Required:
Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per DLH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faba655df-d5b3-4e63-990e-42f416d8fb1d%2F363b07ca-09be-4c95-829b-6ad60a5045f6%2Fl9pkjob_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ces
Exercise 2-1 (Algo) Compute a Predetermined Overhead Rate [LO2-1]
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the
year, it estimated that 39,000 direct labor-hours would be required for the period's estimated level of production. The company also
estimated $511,000 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 $661,726 and its actual total direct labor was 39,500
hours.
Required:
Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per DLH
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