Harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the yea
r, it estimated that 20,000 direct labor-hours would be required for the period’s estimated level of production. the company also estimated $94,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. harris';s actual manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours.
It is 22 laps because each mile means 4 laps on the track and 5 miles multiplied by 4 laps it 20 laps to do 5 miles, and then 1/2 mile times two is 2/4 which is 2 laps. 2 plus 20 is 22 laps.