Ramos Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 69

Essay

Ramos Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. Data for the most recently completed year appear below:

$\begin{array}{ll}\text {Estimates made at the begirming of the year:}\\\text { Estimated labor-hours } & 24,000 \\\text { Estimated variable manufacturing overhead } & \$ 6.86 \text { per labor-hour } \\\text { Estimated total fixed manufacturing overhead } & \$ 394,560 \\\text { Actual labor-hours for the year } & 24,500\end{array}$

Required:
Compute the company's predetermined overhead rate for the recently completed year.

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Definitions:

Employee Effectiveness

Refers to how efficiently and effectively an employee performs their job duties, contributing to organizational goals.

Individual Power

The capacity or ability of a single person to influence others or change outcomes in a desired way.

Legitimate Power

Power derived from a person’s position or job in an organization.

Organizational Role

The set of responsibilities, activities, and expectations associated with a specific position within an organization.