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ahrayia [7]
4 years ago
12

Strong company applies overhead based on machine hours. at the beginning of 20x1, the company estimated that manufacturing overh

ead would be $500,000, and machine hours would total 20,000. by 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. on the basis of this information, the 20x1 predetermined overhead rate was:
Business
1 answer:
Andrej [43]4 years ago
7 0
Hi there

predetermined overhead rate =
estimated manufacturing overhead ÷
estimated machine hours
So
predetermined overhead rate =
500,000÷20,000=25 per machine hour

Good luck!
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