Menghitung the Predetermined Overhead Rates
Harris Fabric Computer computes its predetermined overheadannually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134.000 andthe total direct labor hour would be 20,000 hours. Its actual total manufacturing overhead for the year was $123.900 and its actual total direct labor was 21.000 hours.
Required: Compute the company's predetermined overhead rate for the year!