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Business, 15.02.2021 20:20 gjvyverman
O'Reilly Corporation uses direct labor-hours to calculate its annual plantwide predetermined overhead. For the current period's estimated level of production, O'Reilly Corporation estimated that 40,000 direct labor-hours would be required. Estimated fixed manufacturing overhead cost is $556,000 for the current period and variable manufacturing overhead cost of $3.00 per direct labor-hour. O'Reilly Corporation's actual manufacturing overhead cost for the period was $749,250 and its actual total direct labor was 40,500 hours.
Required:
Compute the company's plantwide predetermined overhead rate for the year.
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