Harkin Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 71

Essay

Harkin Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:
$\begin{array}{llc}\text { Estimated machine-hours } & 73,000 \\\text { Estimated variable manufacturing overhead } & \$ 3.49 \text { per machine-hour } \\\text { Estimated total fixed manufacturing overhead } & \$ 838,770\end{array}$

Required:
Compute the company's predetermined overhead rate.