Hayne Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:
A)$7.89
B)$30.95
C)$24.52
D)$32.41

Question

Hayne Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below:   The predetermined overhead rate for the recently completed year was closest to:
A)$7.89 
B)$30.95 
C)$24.52 
D)$32.41

Quizplus · Accepted Answer

Estimated total manufacturing overhead = $465,880 + ($7.89 per machine-hour F1F1F1S1F1F1F10 19,000 machine-hours)= $615,790
Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total amount of the allocation base = $615,790 F1F1F1S1F1F1F10 19,000 machine-hours = $32.41 per machine-hour

Hayne Corporation Bases Its Predetermined Overhead Rate on the Estimated