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QUESTION
Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours.
Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $541,000 and the total direct labor would be 33,000 hours. Its actual total manufacturing overhead for the year was $790,000 and its actual total direct labor was 34,000 hours.
