Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour.
-The predetermined overhead rate was based on how many estimated machine-hours?

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total machine-hours
Estimated total machine-hours = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Predetermined overhead rate
= $135,850 F1F1F1S1F1F1F10 $24.70 per machine-hour
= 5,500 machine-hours

Carter Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours