The following data are available for Skyway:
$$\begin{array} { | l | l | }
\hline \text { Estimated machine hours } & 40,000 \text { hours } \
\hline \text { Estimated overhead costs } & \$ 80,000 \
\hline
\end{array}$$
If overhead is applied based on machine hours,the predetermined overhead rate is:

Question

The following data are available for Skyway:
$$\begin{array} { | l | l | } 
\hline \text { Estimated machine hours } & 40,000 \text { hours } \
\hline \text { Estimated overhead costs } & \$ 80,000 \
\hline
\end{array}$$
If overhead is applied based on machine hours,the predetermined overhead rate is:

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the estimated overhead costs by the estimated machine hours: $80,000 / 40,000 = $2.00 per machine hour.

The Following Data Are Available for Skyway If Overhead Is Applied Based on Machine Hours,the Predetermined Overhead