Strong Company applies overhead based on machine hours. At the - 15535

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Thu 07 Mar, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

 Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $587,500 and machine hours would total 23,500. By 20x1 year-end, actual overhead totaled $620,900, and actual machine hours were 33,400. On the basis of this information, the 20x1 predetermined overhead rate was:
 
$0.04 per machine hour.
 
$0.05 per machine hour.
 
$20 per machine hour.
 
$21 per machine hour.
 
$25 per machine hour.
                                      

Solution Description

 

Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $587,500 and machine hours would total 23,500. By 20x1 year-end, actual overhead totaled $620,900, and actual machine hours were 33,400. On the basis of this information, the 20x1 predetermined overhead rate was: