Answer:
Predetermined overhead rate= $6.7
Explanation:
Giving the following information:
Estimated that 20,000 direct labor-hours.
Estimated $94,000 of fixed manufacturing overhead cost.
Variable manufacturing overhead of $2.00 per direct labor-hour.
Harris's actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21,000 hours.
Predetermined overhead rate= estimated total manufacturing overhead costs/ total amount of allocation base
Predetermined overhead rate= (94000+ 2*20000)/20000
Predetermined overhead rate= $6.7