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Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours....

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Accounting

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 33,000 direct labor-hours would be required for the periods estimated level of production. The company also estimated $591,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harriss actual manufacturing overhead cost for the year was $754,055 and its actual total direct labor was 33,500 hours.

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