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 $539,000 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 $692,858 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.) > Answer is complete but not entirely correct. per DLH Predetermined overhead rate $ 15.68
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 $539,000 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 $692,858 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.) > Answer is complete but not entirely correct. per DLH Predetermined overhead rate $ 15.68
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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 $539,000 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 $692,858 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.)
> Answer is complete but not entirely correct.
Predetermined overhead rate $ 15.68 per DLH
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