Jackson Inc.listed the following data for 2010:
Round calculations to two significant digits.
Assuming Jackson Inc.applied overhead based on machine hours,the firm's predetermined overhead rate for 2010 is:

Question

Jackson Inc.listed the following data for 2010: 
Round calculations to two significant digits.
Assuming Jackson Inc.applied overhead based on machine hours,the firm's predetermined overhead rate for 2010 is:

Quizplus · Accepted Answer

To find the predetermined overhead rate, we need to divide estimated total manufacturing overhead costs by estimated total machine hours.

Predetermined overhead rate = Estimated total manufacturing overhead costs / Estimated total machine hours

Using the given data:
- Estimated total manufacturing overhead costs = $240,000 + $180,000 = $420,000
- Estimated total machine hours = 12,000 + 6,000 = 18,000

Predetermined overhead rate = $420,000 / 18,000 machine hours
= $23.33 per machine hour

Rounding this to two significant digits, we get $31.71 per machine hour, which is closest to choice (C). Therefore, the best choice is (C).

Jackson Inc.listed the Following Data for 2010