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Vlada [557]
3 years ago
9

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 54,000 labor-hours. The estimated variable manufacturing overhead was $7.90 per labor-hour and the estimated total fixed manufacturing overhead was $961,200. The actual labor-hours for the year turned out to be 56,300 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.)
Business
1 answer:
nlexa [21]3 years ago
7 0

Answer:

$17.80 per labor-hour

Explanation:

Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity

                                                  = $961,200 ÷ 54,000 labor-hours

                                                  = $17.80 per labor-hour

Predetermined overhead rate for the recently completed year is $17.80 per labor-hour.

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