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TB MC Qu. 2-39 (Algo) Brothern Corporation bases its predetermined... Brother Corporation bases its predetermined overhead ra
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Answer #1

Requirement:- The predetermined overhead rate for the recently completed year was closest to:

Solution:- Predetermined overhead rate = $26.03 per machine hour

Calculation of predetermined overhead rate:-

Predetermined overhead rate = Estimated Variable + Estimated Fixed

Predetermined overhead rate = $5.66 per machine hour + $20.37 per machine hour

Predetermined overhead rate = $26.03 per machine hour

Estimated fixed manufacturing overhead $639,618
Estimated Machine Hours 31,400
Fixed predetermined overhead rate (639,618 / 31,400) $20.37 per machine hour

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