Henkes Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 299

Essay

Henkes 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 66,000 labor-hours. The estimated variable manufacturing overhead was $8.41 per labor-hour and the estimated total fixed manufacturing overhead was $1,533,180. The actual labor-hours for the year turned out to be 68,400 labor-hours.Required:Compute the company's predetermined overhead rate for the recently completed year.

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Definitions:

Printer

An external or internal device that transfers digital documents and images onto physical paper or other media.

Digital Information

Data that has been encoded digitally, allowing for storage, retrieval, and manipulation on electronic devices.

Spooling

The process of sending data to a temporary storage area between the source and the destination to manage or synchronize the data flow.

Output

The result or product of a process, such as data or material, which is produced or delivered by a computer or machine.