Tungsten,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 $106,000.Additional estimated information is given below. $$\begin{array} { | l | l | l | }
\hline & \text { Normal } & \text { Premium } \
\hline \text { Machine hours } ( \mathrm { MHr } ) & 30,000 & 34,000 \
\hline \text { Direct materials } & \$ 52,000 & \$ 400,000 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

Question

Tungsten,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 $106,000.Additional estimated information is given below. $$\begin{array} { | l | l | l | } 
\hline & \text { Normal } & \text { Premium } \
\hline \text { Machine hours } ( \mathrm { MHr } ) & 30,000 & 34,000 \
\hline \text { Direct materials } & \$ 52,000 & \$ 400,000 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The Answer of Tungsten,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 $106,000.Additional estimated information is given below. $$\begin{array} { | l | l | l | } 
\hline & \text { Normal } & \text { Premium } \
\hline \text { Machine hours } ( \mathrm { MHr } ) & 30,000 & 34,000 \
\hline \text { Direct materials } & \$ 52,000 & \$ 400,000 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

Tungsten,Inc Calculate the Predetermined Overhead Allocation Rate