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umka21 [38]
3 years ago
8

A company estimates that overhead costs for the next year will be $8,500,000 for indirect labor and $164,500 for factory utiliti

es. The company uses machine hours as its overhead allocation base. If 490,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.)
Business
1 answer:
Georgia [21]3 years ago
7 0

Answer:

$17.68 per machine hour.

Explanation:

Plant Overhead rate per machine hour = $8,500,000 + $164,500 / 490,000 machine hours

Plant Overhead rate per machine hour = $8,664,500 / 490,000 machine hours

Plant Overhead rate per machine hour = $17.68265306122449

Plant Overhead rate per machine hour = $17.68 per machine hour.

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