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Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data...

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 33,100 Estimated variable manufacturing overhead $5.72 per machine-hour Estimated total fixed manufacturing overhead $770,568 Actual machine-hours for the year 30,800 The predetermined overhead rate for the recently completed year was closest to: $28.60 per machine-hour $29.00 per machine-hour 0 0 $5.72 per machine-hour $23.28 per machine-hour
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ReportAnswer #1

Predetermined overhead rate is calculated by using the following formula

=Estimated manufacturing overheadcost/estimated total base unit

Here,

Predetermined oh =770568/33100

= 23.28

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