Harris fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. the company also estimated $543,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. harris’s actual manufacturing overhead cost for the year was $678,635 and its actual total direct labor was 34,500 hours. required: compute the company’s plantwide predetermined overhead rate for the year. (round your answer to 2 decimal places.)

Overhead rate= 17.97

Explanation:

Giving the following information:

It estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production.

The company also estimated:

Fixed manufacturing cost= $543,000

Variable manufacturing cost= $2.00 per direct labor-hour.

Harris’s actual manufacturing overhead cost:

Total= $678,635

Actual total direct labor was 34,500 hours.

Overhead rate: Estimated total overhead cost/Estimated total amount of the allocation base

Overhead rate= (543000+2*34000)/340000

Overhead rate= 17.97

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough