Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job:
-For Wood Manufacturing,what is the annual manufacturing overhead cost driver rate?
A)$0.50 per machine hour
B)$0.80 per machine hour
C)$0.30 per machine hour
D)$33.33 per machine hour

Question

Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job: 
-For Wood Manufacturing,what is the annual manufacturing overhead cost driver rate?
A)$0.50 per machine hour 
B)$0.80 per machine hour 
C)$0.30 per machine hour 
D)$33.33 per machine hour

Quizplus · Accepted Answer

C)$0.30 per mh = $30,000 / 100,000mh

Wood Manufacturing Is a Small Textile Manufacturer Using Machine-Hours as the Single