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Willow Creek Corporation - Predetermined overhead rate - 25 Feb, 2013

Willow Creek 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 38,500 labor hours. The estimated variable manufacturing overhead was $7.37 per labor hour and the estimated total fixed manufacturing overhead was $601,328. The actual labor hours for the year turned out to be 41,721 labor hours.

 

Required:

 

Compute the company's predetermined overhead rate for the recently completed year.



Category : Cost Accounting

Search Keywords :
Willow , Creek , Predetermined , Overhead , Rate , Variable , Fixed , Labor , Hours 


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Answer  - 25 Feb, 2013
Predetermined overhead rate = Variable overhead rate + fixed overhead rate ....


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