McClean supplies restaurants with many sanitation supplies (such as paper towels and soaps). Assume that the manufacturing plant processing the sanitation supplies anticipated incurring a total of $800,000 of manufacturing overhead during the year. Of this amount, $500,000 is fixed. Manufacturing overhead is allocated based on machine hours. The plant anticipates running the machines 50,000 hours next year.
Required:
1. Compute the standard variable overhead rate.
2. Compute the fixed overhead rate.
3. Compute the standard total overhead rate.

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The Answer of McClean supplies restaurants with many sanitation supplies (such as paper towels and soaps). Assume that the manufacturing plant processing the sanitation supplies anticipated incurring a total of $800,000 of manufacturing overhead during the year. Of this amount, $500,000 is fixed. Manufacturing overhead is allocated based on machine hours. The plant anticipates running the machines 50,000 hours next year.
Required:
1. Compute the standard variable overhead rate.
2. Compute the fixed overhead rate.
3. Compute the standard total overhead rate.

McClean Supplies Restaurants with Many Sanitation Supplies (Such as Paper