Cacioppo 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 66,000 labor-hours. The estimated variable manufacturing overhead was $7.45 per labor-hour and the estimated total fixed manufacturing overhead was $1,760,220. The actual labor-hours for the year turned out to be 63,800 labor-hours.
Required:
Compute the company's predetermined overhead rate for the recently completed year.

Question

Quizplus · Accepted Answer

The Answer of Cacioppo 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 66,000 labor-hours. The estimated variable manufacturing overhead was $7.45 per labor-hour and the estimated total fixed manufacturing overhead was $1,760,220. The actual labor-hours for the year turned out to be 63,800 labor-hours.
Required:
Compute the company's predetermined overhead rate for the recently completed year.

Cacioppo Corporation Bases Its Predetermined Overhead Rate on the Estimated