Moonrays,Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $106,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | }
\hline & \text { Normal } & \text { Premium } \
\hline \text { Machine hours (MHr) } & 21,000 & 38,000 \
\hline \text { Direct materials } & \$ 60,000 & \$ 500,000 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

Question

Moonrays,Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $106,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | } 
\hline & \text { Normal } & \text { Premium } \
\hline \text { Machine hours (MHr) } & 21,000 & 38,000 \
\hline \text { Direct materials } & \$ 60,000 & \$ 500,000 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The Answer of Moonrays,Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $106,000.Additional estimated information is given below. $$\begin{array} { | l | r | r | } 
\hline & \text { Normal } & \text { Premium } \
\hline \text { Machine hours (MHr) } & 21,000 & 38,000 \
\hline \text { Direct materials } & \$ 60,000 & \$ 500,000 \
\hline
\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

Moonrays,Inc Calculate the Predetermined Overhead Allocation Rate