Question

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 45.900 machine-hours. The estimated variable manufacturing overhead was $7.53 per machine-hour and the estimated total fed manufacturing overhead was $1290,708. The predetermined overhead rate for the recently completed year was closest to: Multiple Choice $35.65 per machine-hour $7.53 per machine-hour $34.65 per machine-hour O $28.12 per machine-hour

Answer 1

Answer: The predetermined overhead sate for Machine hours is calculated by dividing the estimated total manufacturing overhead Cost Cocor by estimated machine hours Predetermined Overhead Rato per machine how Total Manufacturing overhead (WN) Estimated machine hours $1,636,335 45900 hours $35.65 per. Machine hour. WN Calculation of total manufacturing Overhead Cost Estimated fixed overhead $1,290,708 Estimated variable overhead (45900X $7,53) $345,627 Total Manufacturing overhead $1,636,335

So, the correct answer is (a). $35.65 per machine hour.

Thankyou..........