Simoneaux Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the machine-hours for the upcoming year at 22,000 machine-hours.The estimated variable manufacturing overhead was $8.65 per machine-hour and the estimated total fixed manufacturing overhead was $609,400.The predetermined overhead rate for the recently completed year was closest to:
A)$36.35 per machine-hour
B)$27.70 per machine-hour
C)$33.32 per machine-hour
D)$8.65 per machine-hour

Question

Quizplus · Accepted Answer

Estimated total manufacturing overhead = $609,400 + ($8.65 per machine-hour F1F1F1S1F1F1F10 22,000 machine-hours)= $799,700
Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total amount of the allocation base
= $799,700 F1F1F1S1F1F1F10 22,000 machine-hours = $36.35 per machine-hour

Simoneaux Corporation Bases Its Predetermined Overhead Rate on the Estimated