A company estimates that overhead costs for the next year will be $9,234,000 for indirect labor and $156,800 for factory utilities.The company uses machine hours as its overhead allocation base.If 500,000 machine hours are planned for this next year,what is the company's plantwide overhead rate? (Round to two decimal places)
A) $0.05 per machine hour.
B) $18.47 per machine hour.
C) $18.78 per machine hour.
D) $0.31 per machine hour.
E) $3.19 per machine hour.

Question

Quizplus · Accepted Answer

($9,234,000 + $156,800)/500,000 machine hours = $18.78 per machine hour

A Company Estimates That Overhead Costs for the Next Year