Moore Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data...
Moore 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 | 20,200 | ||
| Estimated variable manufacturing overhead | $ | 9.00 | per machine-hour |
| Estimated total fixed manufacturing overhead | $ | 496,920 | |
| Actual machine-hours for the year | 21,400 | ||
The predetermined overhead rate for the recently completed year was
closest to:
$33.60.
$9.00.
$24.60.
$32.22.
Homework Answers
Total estimated overhead=Total estimated variable overhead+Total fixed overhead estimated
=(20200*9)+496920=$678720
predetermined overhead rate=Total estimated overhead/Estimated machine hours
=678720/20200
=$33.6
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Moore Corporation bases its predetermined overhead rate on the
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