Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-

hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required

for the periods estimated level of production. The company also estimated $94,000 of fixed manu-

facturing overhead expenses for the coming period and variable manufacturing overhead of $2.00

per direct labor-hour. Harriss actual manufacturing overhead for the year was $123,900 and its

actual total direct labor was 21,000 hours.