Ramos Corporation Bases Its Predetermined Overhead Rate on the Estimated

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:
$\begin{array}{|c|r|l|}\hline \begin{array}{l}\text { Estimates made at the beginning of } \\\text { the year: }\end{array} & & \\\hline \text { Estimated labor-hours } & 24,000 & \\\hline \begin{array}{l}\text { Estimated variable } \\\text { manufacturing owerhead }\end{array} & \$ 6.86 & \begin{array}{l}\text { per labor- } \\\text { hour }\end{array} \\\begin{array}{c}\text { Estimated total fteed } \\\text { manufacturing owerhead }\end{array} & \$ 394,560 & \\\hline \text { Actual labor-hours tor the year } & 24,500 & \\\hline\end{array}$
Required:
Compute the company's predetermined overhead rate for the recently completed year.

Correct Answer:

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