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Exercise 3-1 (Algo) Compute a Predetermined Overhead Rate [LO3-1) Harris Fabrics computes Its plantwide predetermined overhea

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Answer #1

Fixed predetermined overhead rate = Estimated overhead/Estimated labor hours

= (523,000/43,000) = 12.16

Total predetermined overhead rate = 12.16 + 3

= 15.16 per DLH

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