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Neffer Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year: Budgeted Actual Overhead cost $2,000,000 $1,900,000

Neffer Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year:

Budgeted Actual
Overhead cost $2,000,000 $1,900,000
Computer hours 100,000 90,000
Direct labor hours 200,000 180,000
Overhead is applied on the basis of computer hours.


Compute the predetermined overhead rate.

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