Ch $3$ Exercises

Part $1$ of $3$

$3$

points $q,$

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Required information

$[$The following information applies to the questions displayed below.$]$

The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct$-$labor cost: $75,000$ hours $($practical capacity$)$ at $$16$ per hour Actual direct$-$labor cost: $80,000$ hours at $$17\mathrm{.}50$ per hour

Budgeted manufacturing overhead: $$997,500$

Actual selling and administrative expenses: $$434,000$

Actual manufacturing overhead:

Depreciation

Property taxes

$$232,000$

Indirect labor

$21,000$

$83,000$

Supervisory salaries $201,000$

Utilities $58,000$

Insurance $3,000$

Rental of space $($see data below$)302,000$

Indirect material:

Beginning inventory, January $1$

Purchases during the year

$48,000$

Ending inventory, December $31$

$95,000$

$62,000$

Required:

Compute the firm's predetermined overhead rate, which is based on direct$-$labor hours.

Note: Round your answer to $2$ decimal places.

Predetermined overhead rate

per DLH