ABC Company estimates total overhead costs to be $1,200,000 and will apply overhead to units produced based on 200,000 estimated machine hours. During the year ABC Company incurred actual overhead costs of $1,250,000 and achieved 250,000 machine hours. ABC Company's predetermined overhead rate is:
A) $4.80 per machine hour.
B) $5.00 per machine hour.
C) $6.00 per machine hour.
D)$6.25 per machine hour.

Question

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The Answer of ABC Company estimates total overhead costs to be $1,200,000 and will apply overhead to units produced based on 200,000 estimated machine hours. During the year ABC Company incurred actual overhead costs of $1,250,000 and achieved 250,000 machine hours. ABC Company's predetermined overhead rate is:
A) $4.80 per machine hour.
B) $5.00 per machine hour.
C) $6.00 per machine hour.
D)$6.25 per machine hour.

ABC Company Estimates Total Overhead Costs to Be $1,200,000 and Will