TCO B) Wahr Corporation bases its predetermined overhead rate on the estimated l
ID: 2425043 • Letter: T
Question
TCO B) Wahr 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 35,000. The estimated variable manufacturing overhead was $7.25 per labor hour and the estimated total fixed manufacturing overhead was $585,000. The actual labor hours for the year turned out to be 33,000.
Required:
Compute the company's predetermined overhead rate for the recently completed year. (Points : 25)
Explanation / Answer
Variable manufacturing OH- 7.25*33000= 239250 Fixed manufacturing OH 585000 Total manufacturing OH 824250 Estimated labor hrs. for the upcoming yr. 35000 So, predetermined OH rate for the completed yr.= 824250/35000 $ 23.55
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.