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MrMuchimi
2 years ago
11

predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently complete

d year, the company estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $8.52 per machine-hour and the estimated total fixed manufacturing overhead was $256,500. The predetermined overhead rate for the recently completed year was closest to:
Business
1 answer:
Papessa [141]2 years ago
3 0

Answer:

Total overhead rate =  $34.17  per machine hour

Explanation:

The total overhead rate would  the sum of the variable overhead rate and the fixed overhead rate

<em>The pre-determined fixed overhead absorption rate = Estimated fixed overhead /Estimated machine hours </em>

<em>DATA:</em>

<em>Estimated overhead       - $256,500.</em>

<em>Estimated machine hours -  10,000 machine hours</em>

The pre-determined fixed overhead absorption rate =

$256,500/ 10,000 machine hours = 25.65  per hour

<em>The pre-determined overhead absorption rate = $25.65  per hour</em>

Total overhead rate = Variable rate + Fixed rate

                                 = $8.52 +  $25.65 = $34.17

Total overhead rate =  $34.17  per machine hour

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