EXERCISE 2-1 Compute a Predetermined Overhead Rate ! LO2-1 Harris Fabries computes its plantwide predetermined overhend rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20,000 Page 80 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21.000 hours. Required: Compute the company's plantwide predetermined overhead rate for the year