Dobrinski Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 30

Essay

Dobrinski 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 13,000 labor-hours.The estimated variable manufacturing overhead was $2.35 per labor-hour and the estimated total fixed manufacturing overhead was $156,130.
Required:
Compute the company's predetermined overhead rate.

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Definitions:

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