Question

Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 41,000 machine-hours. The estimated variable manufacturing overhead was $4.16 per machine-hour and the estimated total fixed manufacturing overhead was $1,167,680. The predetermined overhead rate for the recently completed year was closest to: A. $32.64 per machine-hour B. $31.64 per machine-hour C. $4.16 per machine-hour D. $28.48 per machine-hour

Answer 1

Answer:

D.$28.48 per machine hour

Explanation:

The predetermined overhead is calculated as ; Estimated total fixed overhead / Estimated machine hours

Given the above information,.

Predetermined overhead = $1,167,680/41,000

=$28.48 per machine hour