Asked by Rebika Basnet on Jul 05, 2024
Verified
The predetermined overhead rate per MH is closest to:
A) $20.93 per MH
B) $19.86 per MH
C) $19.50 per MH
D) $20.55 per MH
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs.
MH
Often used as an abbreviation for "machine hours," representing the amount of time machines are operated in the production process.
- Acquire knowledge on the foundation of a predetermined overhead rate including its calculation methodology.
- Scrutinize the predetermined overhead rate by identifying its fixed and variable elements.
Verified Answer
KK
Kaleb KoffordJul 11, 2024
Final Answer :
D
Explanation :
Variable overhead + Fixed overhead = $28,490+ $47,545
Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $76,035 ÷ 3,700 MHs = $20.55 per MH
Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $76,035 ÷ 3,700 MHs = $20.55 per MH
Learning Objectives
- Acquire knowledge on the foundation of a predetermined overhead rate including its calculation methodology.
- Scrutinize the predetermined overhead rate by identifying its fixed and variable elements.
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