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Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginni

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Answer #1

Estimated direct labor hour = 30,000

Estimated fixed manufacturing overhead = $590,000

Variable manufacturing overhead rate = $3 per direct labor hour

Predetermined overhead rate = Variable manufacturing overhead rate + Estimated fixed manufacturing overhead/Estimated direct labor hour

= 3 + 590,000/30,000

= 3 + 19.67

= $22.67 per direct labor hour

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