Henkes 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 80,000 labor-hours. The estimated variable manufacturing overhead was $8.60 per labor-hour and the estimated total fixed manufacturing overhead was $1,328,000. The actual labor-hours for the year turned out to be 83,000 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.) Predetermined overhead rate per labor-hour

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Henkes 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 80,000 labor-hours.
The estimated variable manufacturing overhead was $8.60 per labor-hour and the
estimated total fixed manufacturing overhead was $1,328,000. The actual labor-hours
for the year turned out to be 83,000 labor-hours.
Required:
Compute the company's predetermined overhead rate for the recently completed
year. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per labor-hour
Transcribed Image Text:5 Henkes 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 80,000 labor-hours. The estimated variable manufacturing overhead was $8.60 per labor-hour and the estimated total fixed manufacturing overhead was $1,328,000. The actual labor-hours for the year turned out to be 83,000 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.) Predetermined overhead rate per labor-hour
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