(Appendix 3A) Secrease Corporation uses machine-hours as the allocation base for applying its manufacturing overhead.
$\begin{array}{lr}
\text { Estimated manufacturing overhead cost for the year } & \$ 594,000 \
\text { Capacity } & 110,000 \text { machine-hours } \
\text { Estimated amount of the allocation base for the year } & 108,000 \text { machine-hours } \
\text { Amount of the allocation base for the actual output } & \
\text { of the year } & \$ 8,000 \text { machine-hours } \
\text { Actual manufacturing overhead cost for the year } & \$ 589,000
\end{array}$
All of the company's manufacturing overhead is fixed.
-(Appendix 3A)What is the predetermined overhead rate based on capacity to the nearest whole cent?

Question

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The Answer of (Appendix 3A) Secrease Corporation uses machine-hours as the allocation base for applying its manufacturing overhead.
$\begin{array}{lr}
\text { Estimated manufacturing overhead cost for the year } & \$ 594,000 \
\text { Capacity } & 110,000 \text { machine-hours } \
\text { Estimated amount of the allocation base for the year } & 108,000 \text { machine-hours } \
\text { Amount of the allocation base for the actual output } & \
\text { of the year } & \$ 8,000 \text { machine-hours } \
\text { Actual manufacturing overhead cost for the year } & \$ 589,000
\end{array}$
All of the company's manufacturing overhead is fixed.
-(Appendix 3A)What is the predetermined overhead rate based on capacity to the nearest whole cent?

(Appendix 3A) Secrease Corporation Uses Machine-Hours as the Allocation Base