Moonrays Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $110,000.Additional information is given below. Calculate the predetermined overhead allocation rate.
A)$3 per direct labor hour
B)$2 per machine hour
C)$5 per machine hour
D)$2.2 per direct labor hour

Question

Moonrays Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $110,000.Additional information is given below.  Calculate the predetermined overhead allocation rate.
A)$3 per direct labor hour 
B)$2 per machine hour 
C)$5 per machine hour 
D)$2.2 per direct labor hour

Quizplus · Accepted Answer

The Answer of Moonrays Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $110,000.Additional information is given below.  Calculate the predetermined overhead allocation rate.
A)$3 per direct labor hour 
B)$2 per machine hour 
C)$5 per machine hour 
D)$2.2 per direct labor hour