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Vanyuwa [196]
4 years ago
7

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning

of the year, it estimated that 26,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $525,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $658,321 and its actual total direct labor was 26,500 hours.
Required:
Compute the company's predetermined overhead rate for the year.
Business
1 answer:
Deffense [45]4 years ago
5 0

Answer:

$23.2 per direct labor hour

Explanation:

Harris fabrics computes its plantwide determined overhead rate annually in the basis of direct labor hours

Predetermined Overhead rate= Total estimated overhead cost/Total estimated allocation base

The total estimated overhead cost can be calculated as follows

= $525,000 + 3×26,000

= $525,000 + 78,000

= $603,000

Therefore the predetermined overhead rate for the year can be calculated as follows

= $603,000/26,000

= $23.2 per direct labor hour

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A firm decides to scale back its operations due to projections of slower demand. It will move from a large building to a smaller
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Question Options:

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Read 2 more answers
Babble, Inc., buys 405 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is ​$1
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Answer:

The appropriate solution is "764".

Explanation:

Given:

Demand per month,

D = 405

or,

  = 405\times 12

  = 4860

Ordering cost,

S = $15

Holding cost,

H = $0.25

As we know,

⇒  EOQ=\sqrt{\frac{2DS}{H} }

⇒            =\sqrt{\frac{2\times 4860\times 15}{0.25} }

⇒            =\sqrt{\frac{145800}{0.25} }

⇒            =\sqrt{583200}

⇒            =763.67

or,

⇒            =764

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1 year ago
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