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Question - Harris Fabrics calculates its indirect cost rate each year based on the hours of direct labor. At the beginning of the year it was calculated that the total indirect costs of manufacturing of 134,000 monetary units, and that the direct labor time would be 20,000 hours. The actual indirect costs were 123 900, and the labor time was 21,000 hours.
Is required: Calculation of the predetermined indirect cost rate for the year.
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A batch of 100 units of model AR2 is produced using 405 direct labor hours. How much overhead is absorbed by this batch of 100 model AR2s
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