Problem 1 Chapter 2

Exercise 2-1 (Algo) Compute a Predetermined Overhead Rate [LO2-1] Hartis Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 40,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $585,000 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 $736,088 and its actual fotal direct labor was 40,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your onswer to 2 docimal ploces.)