Ramos Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. Data for the most recently completed year appear below:

$\begin{array}{ll}
\text {Estimates made at the begirming of the year:}\
\text { Estimated labor-hours } & 24,000 \
\text { Estimated variable manufacturing overhead } & \$ 6.86 \text { per labor-hour } \
\text { Estimated total fixed manufacturing overhead } & \$ 394,560 \
\text { Actual labor-hours for the year } & 24,500
\end{array}$

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

Question

Ramos Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. Data for the most recently completed year appear below:
 
$\begin{array}{ll}
\text {Estimates made at the begirming of the year:}\
\text { Estimated labor-hours } & 24,000 \
\text { Estimated variable manufacturing overhead } & \$  6.86 \text { per labor-hour } \
\text { Estimated total fixed manufacturing overhead } & \$ 394,560 \
\text { Actual labor-hours for the year } & 24,500
\end{array}$
 
Required:
Compute the company's predetermined overhead rate for the recently completed year.

Quizplus · Accepted Answer

The Answer of Ramos Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. Data for the most recently completed year appear below:
 
$\begin{array}{ll}
\text {Estimates made at the begirming of the year:}\
\text { Estimated labor-hours } & 24,000 \
\text { Estimated variable manufacturing overhead } & \$  6.86 \text { per labor-hour } \
\text { Estimated total fixed manufacturing overhead } & \$ 394,560 \
\text { Actual labor-hours for the year } & 24,500
\end{array}$
 
Required:
Compute the company's predetermined overhead rate for the recently completed year.

Ramos Corporation Bases Its Predetermined Overhead Rate on the Estimated