Wahr Corporation Bases Its Predetermined Overhead Rate on the Estimated

Essay

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 32,000 labor-hours.The estimated variable manufacturing overhead was $7.17 per labor-hour and the estimated total fixed manufacturing overhead was $584,320.The actual labor-hours for the year turned out to be 33,300 labor-hours.
Required:
Compute the company's predetermined overhead rate for the recently completed year.