Purchase Solution

Predetermined Overhead Rate for Direct Labor Hours

Not what you're looking for?

Ask Custom Question

Compute the Predetermined Overhead Rate [LO] 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.

Required:

Compute the company's predetermined overhead rate for the year.

The predetermined overhead rate is computed as follows:

Round your answers to two decimal places. Include .00 if there are no cents.

Estimated total manufacturing overhead $ ____________
à·Estimated total direct labor hours (DLHs) ____________ DLHs

--------------------------------------------------------------------------------

=Predetermined overhead rate $ ____________ per DLH

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Purchase this Solution
Solution Summary

The solution explains how to calculate the predetermined overhead rate for Harris Fabrics

Solution Preview

The predetermined overhead rate based on direct labor hours is calculated ...

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Plantwide predetermined overhead rates using labor

    Plantwide predetermined overhead rate = Total overhead/direct labor hours = $14,700/300 hours = $49 per direct labor hour Calculate a plantwide predetermined overhead rate using machine hours as the cost driver.

  • Oneida Restaurant Supply Company Predetermined Overhead Rate

    Actual direct-labor hours........18,000 Actual direct-labor rate............$15 1) What is the predetermined overhead rate for the year using machine hours?

  • Accounting (Manufacturing overhead):

    If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: A) 29,300 direct labor-hours B) 28,987 direct labor-hours

  • Question about Overhead Calculation

    Predetermined overehead rate = Estimated Overhead/Estimated direct labor hours The estimated direct labor hours = 100,000 units normal capacity X 1 DLH per unit = 100,000 direct labor hours For Variable overhead Predetermined variable overhead rate

  • Applied Manufacturing Overhead

    rate Actual direct labor hours=10,800 Predetermined overhead rate=$23.4 per direct labor hour Manufacturing overhead applied =10,800X23.4=$252,720 The solution explains how to calculate the applied manufacturing overhead for Luthan Company

  • Predetermined Overhead Rate & Total Cost

    333738 Tanner Bay's predetermined overhead rate; XYZ's total costs for Job #219 Tanner Bay Inc. has two departments, Assembly and Packaging. The company uses a job order costing system and computes a predetermined overhead rate in each department.

  • Standard Cost System

    84,000 Standard direct labor-hours allowed for the actual output 82,000 Compute the predetermined overhead rate for the year.

  • Overhead calculations

    $10,500.00 $12,600.00 (a) Compute the predetermined overhead rate for each department Department A overhead is applied on direct labor cost Department B overhead is applied on direct labor hours Department C overhead is

  • Predetermined Manufaturing Overhead Rates

    In department Y the predetermined rate is based on direct labor hours Predetermined overhead rate = Estimated overhead/estimated direct labor hours = 256,500/45,000=$5.7 per DLH c.

View More Related Solutions