Hsu Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 151

Essay

Hsu 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.

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Definitions:

Tracheids

Long, thin cells in the xylem of vascular plants that help in the transport of water and minerals, and also provide support.

Pits

Small depressions or cavities on a surface or in a structure, often found in fruits or in the landscape.

Perforation Plates

Structures found in the water-conducting vessels of some plants, containing large pores that allow water to flow from one vessel element to another.

Sieve Plates

Specialized structures found in the phloem of plants that facilitate the flow of nutrients by containing pores through which sap can flow between cells.