Danaher Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. Data for the most recently completed year appear below:

Required:

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

Estimates made at the beginning of the year: Estimated labor-hours........... Estimated variable manufacturing overhead...... Estimated total fixed manufacturing overhead ... Actual labor-hours for the year. 24,000 $6.86 per labor-hour $394,560 24,500