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 38,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $507,000 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 $658,046 and its actual total direct labor was 38,500 hours.
Calculation of predetermined overhead rate
Predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total amount of the allocation base
Calculation of Estimated variable manufacturing overhead:
It is given that the variable manufacturing overhead is $2 per direct labor-hour and estimated direct labor-hour is 38000 direct labour-hours
Estimated variable manufacturing overhead = Variable manufacturing overhead * Estimated direct labou-hour
= 2*38000
= 76,000
Calculation of total estimated manufacturing overhead:
It is given that the estimated fixed manufacturing overhead is $507000 and the calculated estimated variable manufacturing overhead is $76,000
Total estimated manufacturing overhead = Estimated fixed manufacturing overhead + Estimated variable manufacturing variable manufacturing overhead
= 507000+76000
=583000
Calculation of predetermined overhead rate:
Predetermined overhead rate = 583000/38000
= 15.34
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At...
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 38,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $516,000 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 $659,464 and its actual total direct labor was 38,500 hours. Required:...
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 38,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $536,000 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 $683,578 and its actual total direct labor was 38,500 hours. Required:...
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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 44,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $590,000 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 $803,630 and its actual total direct labor was 44,500 hours. Compute...
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