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
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
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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