Logan products computes its predetermined overhead rate

Reference no: EM13587819

Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 44,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $576,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $833,970 and its actual total direct labor was 44,500 hours

Required: Compute the company's predetermined overhead rate for the year

Reference no: EM13587819

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