27) Metalica Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20xl year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: A) S20 per machine hour B) $0.05 per machine hour. O 50.04 per machine hour. D) $25 per machine hour. E) $21 per machine hour.

27) Metalica Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20xl year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: A) S20 per machine hour B) $0.05 per machine hour. O 50.04 per machine hour. D) $25 per machine hour. E) $21 per machine hour.

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Description: 27) Metalica Company applies overhead based on machine hours. At the beginning of 20x1,the company estimated that manufacturing overhead would be $500,000, and machinehours would total 20,000. By 20Ox1 year-end, actual overhead totaled $525,000, and

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Overhead is calculated by Amanzi Company based on Direct Labor hours. Amanzi forecasts Overhead to be R700 000, Machine hours to be R200 000, and Direct labour hours to be R35000 at the start of the year. Amanzi has 5000 direct labour hours and 10,000 machine hours each year. What is the rate of predetermined overhead? a. R15.00 per hour per machine b. R14.00 per hour of direct labour c. R20.00 per hour of direct work d. R18.00 per hour per machine g. None of them are valid options.
Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual labor hours were 22,000. The amount of manufacturing overhead applied to production would be: O $210,000. $220,000. $215,000. $200,000.
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27) Metalica Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20xl year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: A) S20 per machine hour. B) S0.05 per machine hour. O $0.04 per machine hour. D) $25 per machine hour. E) $21 per machine hour.
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