# accounting

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Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 38,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated \$567,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of \$4.00 per direct labor-hour. Logan’s actual manufacturing overhead for the year was \$788,136 and its actual total direct labor was 38,500 hours.

Required:

• accounting -

Y= a + bx
y= 567,000 + (4.00* 38,000)
y= 567,000 + 152,000

POR= 719,000/38,000
POR= \$18.92 per direct labor hour

• accounting -

4 X 38000 =152000
567000 + 152000/38000= 18.92

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