Daffe Corporation Uses Direct Labor-Hours in Setting Its Predetermined Overhead

Essay

Daffe Corporation uses direct labor-hours in setting its predetermined overhead rate.At the beginning of the year,the total estimated manufacturing overhead was $165,600.At the end of the year,actual direct labor-hours for the year were 11,900 hours,manufacturing overhead for the year was overapplied by $10,760,and the actual manufacturing overhead was $160,600.
Required:
What must have been the predetermined overhead rate for the year?
$$\begin{array} { | l | l | l | } \hline & \text { Actual manufacturing } & \begin{array} { l } \text { Overapplied manufacturing } \\\text { overhead }\end{array} \\\text { Answer: } & \text { overhead } = & \\\text { Applied manufacturing } \\\text { overhead - }\\\hline \end{array}$$