a corporation applies overhead based upon machine hours to build custom sailboats. at the beginning of the year, they budgeted the following costs to make 50,000 units using 100,000 machine hours. During the year, the company produced 52,000 units using 106,383 machine hours. Actual overhead for the year was $393,617. what is the predetermined overhead rate?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...
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a corporation applies overhead based
upon machine hours to build custom
sailboats. at the beginning of the year,
they budgeted the following costs to
make 50,000 units using 100,000
machine hours. During the year, the
company produced 52,000 units using
106,383 machine hours. Actual overhead
for the year was $393,617. what is the
predetermined overhead rate?
Transcribed Image Text:a corporation applies overhead based upon machine hours to build custom sailboats. at the beginning of the year, they budgeted the following costs to make 50,000 units using 100,000 machine hours. During the year, the company produced 52,000 units using 106,383 machine hours. Actual overhead for the year was $393,617. what is the predetermined overhead rate?
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