The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31:
$\begin{array}{lrr}
\text { Estimated factory overhead costs } & \$ 1,500,000 \
\text { Actual factory overhead costs } & \$ 1,776,400 \
\text { Estimated labor hours } & 48,000 \
\text { Actual labor hours } & 51,700 \
\text { Estimated labor costs } & \$ 756,000 \
\text { Actual labor costs } & \$ 840,125 \
\text { Estimated machine hours } & 96,000\
\text { Actual machine hours }&102,600
\end{array}$

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What is the predetermined factory overhead rate per machine hour?
A) $15.625.
B) $14.620.
C) $18.504.
D) $17.314.

Question

The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31:
$\begin{array}{lrr}
\text { Estimated factory overhead costs } & \$  1,500,000 \
\text { Actual factory overhead costs } & \$  1,776,400 \
\text { Estimated labor hours } & 48,000 \
\text { Actual labor hours } &  51,700 \
\text { Estimated labor costs } & \$  756,000 \
\text { Actual labor costs } & \$  840,125 \
\text { Estimated machine hours } &  96,000\
\text { Actual machine hours }&102,600
\end{array}$

-
What is the predetermined factory overhead rate per machine hour?
A) $15.625.
B) $14.620.
C) $18.504.
D) $17.314.

Quizplus · Accepted Answer

The predetermined factory overhead rate per machine hour is calculated by dividing the estimated factory overhead costs by the estimated machine hours. In this case, the estimated factory overhead costs are $1,500,000 and the estimated machine hours are 96,000. Therefore, the predetermined factory overhead rate per machine hour is $1,500,000 / 96,000 = $15.625.

The Following Information Has Been Gathered for Foxmoor Industries for Its