Question

LONE 6 Saved Help Save & Exit Su 1 A company bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 75,000 labor-hours. The estimated variable manufacturing overhead was $10.70 per labor-hour and the estimated total foed manufacturing overhead was $1.237.500. The actual labor hours for the year turned out to be 78.100 labor-hours. Compute the company's predetermined overhead rate for the recently completed year (Round your answer to 2 decimal places.) 3 Predchormed overhead rato por labor hour * < Prey 21 of 20 Next > .:/ 3 End 9 . 1 2 3 4 % 5 6 7 8 Back 9 0 Q W E R т Y U A S D LL G H Er N х C V B All All Prisc Cari PgUp

Answer 1

Answer:
Company's Predetermined Overhead Rate For the Recently Completed Year:	= Fixed Overhead Rate + Variable Overhead Rate
	= (12,37,500 / 75,000) + 10.70
	= $ 27.2 (Per Labor-hour)