Estimated manufacturing overhead costs were $65,000 and the number of estimated machine hours was 30,000. Actual overhead costs were $64,000 and the actual number of machine hours used was 28,500. Based on machine hours, the overhead application rate per hour is: (Round your answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The overhead application rate per hour is calculated by dividing the estimated manufacturing overhead costs by the number of estimated machine hours. So, $65,000 / 30,000 hours = $2.17 per hour.

Estimated Manufacturing Overhead Costs Were $65,000 and the Number of Estimated