Oscar Inc.,a manufacturer of gift articles,uses a single plantwide rate to allocate indirect costs.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead cost for the year is $5,000,000.And estimated machine hours are 25,000.During the year,the actual machine hours used was 30,000.Calculate the predetermined overhead allocation rate.
A) $166
B) $250
C) $200
D) $150
Correct Answer:
Verified
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