At the end of the year,a company's Manufacturing Overhead account contained the following data: If the denominator activity for the year was 40,000 machine-hours,and if 36,400 machine-hours were allowed for the year's production,then the predetermined overhead rate per machine-hour was:
A)$2.15
B)$1.96
C)$2.26
D)$2.05

Question

At the end of the year,a company's Manufacturing Overhead account contained the following data:  If the denominator activity for the year was 40,000 machine-hours,and if 36,400 machine-hours were allowed for the year's production,then the predetermined overhead rate per machine-hour was:
A)$2.15 
B)$1.96 
C)$2.26 
D)$2.05

Quizplus · Accepted Answer

Overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Standard hours allowed for the actual output
$78,260 = Predetermined overhead rate F1F1F1S1F1F1F10 36,400 hours
Predetermined overhead rate = $78,260 F1F1F1S1F1F1F10 36,400 hours = $2.15 per hour

At the End of the Year,a Company's Manufacturing Overhead Account