Question

Buehrle Corporation 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 27,500 labor-hours. The estimated variable manufacturing overhead was $2.25 per labor-hour and the estimated total fixed manufacturing overhead was $313,940.

Compute the company's predetermined overhead rate for the recently completed year (round your final answer to the nearest penny, i.e. show to two decimal places).

Answer 1

Answer

Predetermined Overhead Rate = Variable Overhead Rate + Fixed Overhead Rate

2.25 + 313940/27500 = $13.67

Answer is $13.67