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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 37,000 direct labor-hours would be required for the periods estimated level of production. The company also estimated $546,000 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 $729,628 and its actual total direct labor was 37,500 hours

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