Harkin Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 70

Essay

Harkin Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below:
$$\begin{array} { | l | r | l | } \hline \text { Estimated machine-hours } & 73,000 & \\\hline \text { Estimated variable } & \$ 3.49 & \begin{array} { l } \text { per machine- } \\\text { hour }\end{array} \\\hline \begin{array} { l } \text { manufacturing overhead } \\\text { manufacturing overhead }\end{array} & \$ 838,770 & \\\hline\end{array}$$
Required:
Compute the company's predetermined overhead rate.

---

Definitions:

Labor Unions

Organizations that represent workers in negotiations with employers regarding wages, working conditions, and other employment rights.

Collective Bargaining

The process in which workers, through their unions, negotiate with their employers on terms of employment, including wages, hours of work, working conditions, and benefits.

Negotiations

The process by which two or more parties discuss and attempt to reach a mutual agreement on matters of common interest.

Job Security

The likelihood or assurance a person has that they will be able to continue their employment without risk of becoming unemployed.