### Harris Fabrics: Computation of Plantwide Predetermined Overhead RateHarris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours (DLH). At the beginning of the year, the company estimated that 30,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $598,000 of fixed manufacturing overhead cost for the coming period and a variable manufacturing overhead of $3.00 per direct labor-hour.For the year, Harris’s actual manufacturing overhead cost was $751,317, and its actual total direct labor was 30,500 hours.### Required:Compute the company’s plantwide predetermined overhead rate for the year. $ (\text{Round your answer to 2 decimal places.}) $**Predetermined Overhead Rate Calculation:**![](https://example.com/overhead_rate.png)\[\text{Predetermined overhead rate} = \left( \frac{\text{Estimated fixed manufacturing overhead cost} + (\text{Variable manufacturing overhead per DLH} \times \text{Estimated total DLH})} \right) / \text{Estimated total DLH}\]### Predetermined Overhead Rate Result:\[\text{Predetermined overhead rate} = \frac{598,000 + (3 \times 30,000)}{30,000}\]

While manufacturing a product, there are two types costs which are incurred in the manufacturing…

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 30,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $598,000 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 $751,317 and its actual total direct labor was 30,500 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 the year, it estimated that 30,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $598,000 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 $751,317 and its actual total direct labor was 30,500 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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