Question

Question 2: (1 point)

Exercise 3-3 Compute the Predetermined Overhead Rate [LO3]
Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overhead for the year was $123,900 and its actual total direct labor was 21, Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overhead for the year was $123,900 an Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours.d its actual total direct labor was 21,000 hours.000 hours.

Required:
Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Predetermined overhead rate $ ___6.6_________ per DLH

Answer 1

Company's predetermined overhead rate for the year = $6.70 per Direct Labor Hour