Exercise 21 Compute a Predetermined Overhead Rate LO21 166 p

Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1] 166 points rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 38,000 direct labor-hours would be r estimated $596,000 of fxed ma direct labor-hour. Harris\'s actual manufacturing overhead cost for the year was $823.292 and its actual total direct labor was 38,500 for the period\'s estimated level of The company also overhead of $4.00 per overhead cost for the coming period and variable manufacturing hours. Compute the company\'s plantwide overhead rate for the year (Round your answer to 2 decimal plece%)

Solution

Predetermined overhead rate = 4+(596000/38000)= 19.68 per DLH