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BRIEF EXERCISE 3-3 Computing the Predetermined Overhead Rate [LO3 - CC5] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labour-hours.

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BRIEF EXERCISE 3-3 Computing the Predetermined Overhead Rate [LO3 - CC5] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labour-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $540,000 and the total direct labour would be 30,000 hours. Its actual total manufacturing overhead for the year was $547,900, and its actual total direct labour was 31,000 hours. Required: Commute the company's predetermined overhead rate for the year. BRIEF EXERCISE 3-3 Computing the Predetermined Overhead Rate [LO3 - CC5) Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labour-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $540,000 and the total direct labour would be 30,000 hours. Its actual total manufacturing overhead for the year was $547,900, and its actual total direct labour was 31,000 hours. Required: Compute the company's predetermined overhead rate for the year. EXERCISE 3-7 Applying Overhead With Differing Bases (LO3 - CC5; L07 - CC14] Estimated cost and operating data for three companies for the upcoming year follow: Direct labour-hours 80,000 45,000 60,000 Machine-hours 30,000 125,00 21,000 0 Direct materials cost $400,0 $290,0 $300,0 00 00 00 Manufacturing $536.0 $5200 $4800 Machine-hours 30,000 125,00 21,000 0 Direct materials cost $400,0 $290,0 $300,0 00 00 00 Manufacturing overhead cost $536,0 $520,0 $480,0 00 00 00 Page 130 Predetermined overhead rates are computed using the following bases in the three companies: Direct labour-hours Y Machine-hours Z Direct materials cost Required: 1. Compute the predetermined overhead rate to be used in each company during the upcoming year. 2. Assume that Company X works on three jobs during the upcoming year. Direct labour-hours recorded by job are as follows: job 418, 18,000 hours, job 419, 26,000 hours, job 420, 38,000 hours. How much overhead cost will the company apply to work in process for the year? If actual overhead costs total $530,000 for the year, will overhead be under or overapplied? By how much

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