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lutik1710 [3]
3 years ago
6

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hour

s. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 80,000 Total fixed manufacturing overhead cost $416,000 Variable manufacturing overhead per machine-hour $ 3.10 The estimated total manufacturing overhead is closest to:
Business
1 answer:
seropon [69]3 years ago
8 0

Answer:

Predetermined manufacturing overhead rate= $8.3 per machine hour

Explanation:

Giving the following information:

Total machine-hours 80,000

Total fixed manufacturing overhead cost $416,000

Variable manufacturing overhead per machine-hour $ 3.10

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (416,000/80,000) + 3.1

Predetermined manufacturing overhead rate= $8.3 per machine hour

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