3 (10 MINUTES) THE PREDETERMINED OVERHEAD RATE IS COMPUTED...

Exercise 3-3 (10 minutes)

The predetermined overhead rate is computed as follows:

Estimated total manufacturing overhead ... $134,000

÷ Estimated total direct labor hours (DLHs)... 20,000 DLHs

= Predetermined overhead rate... $6.70 per DLH

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Solutions Manual, Chapter 3 71