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:

Polarization

The division into two sharply contrasting groups or sets of opinions or beliefs.

Referents

Objects, events, or concepts that words or phrases denote or stand for in communication.

Vocalizations

The production of sounds with the voice, as a form of communication among humans or other animals.

Symbols

Objects, figures, or colors used to represent ideas or concepts.