Question

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 40,600 Estimated variable manufacturing overhead $ 6.54 per machine-hour Estimated total fixed manufacturing overhead $ 944,762 Actual machine-hours for the year 36,700 The predetermined overhead rate for the recently completed year was closest to:

Answer 1

Answer:

The predetermined overhead rate is 29.81 per machine hour

Explanation:

Fixed predetermine overhead rate = Estimated fixed manufacturing overhead / Estimated machine hour

Fixed predetermine overhead rate = $944,762 / 40,600

Fixed predetermine overhead rate = $23.27 per machine hour

Total predetermine overhead rate = Fixed predetermine overhead rate + Estimated variable manufacturing overhead

= $23.27 + $6.54

= 29.81 per machine hour