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The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is?

Respuesta :

Answer:

overhead rate = $62 per machine hour

Step-by-step explanation:

given data

total overhead = $15,500,000

total machine hours = 250,000

actual overhead = $16,000,000

actual machine hours = 330,000 hours

to find out

overhead rate based on machine hours is

solution

we find here Predetermined overhead rate that is calculate as

overhead rate = [tex]\frac{estimate overhead}{estimate machine hour}[/tex]

put here value

overhead rate = [tex]\frac{15500000}{250000}[/tex]

overhead rate = $62 per machine hour

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