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1) Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $549,000 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 $679,549 and its actual total direct labor was 34,500 hours.
Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.) ____ Per DLH
2) Luthan Company uses a predetermined overhead rate of $22.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $266,400 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.
The company incurred actual total manufacturing overhead costs of $266,000 and 12,400 total direct labor-hours during the period.
Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
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