Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:
Estimated machine-hours 72,900
Estimated variable manufacturing overhead $ 3.50 per machine-hour
Estimated total fixed manufacturing overhead 838,710
The predetermined overhead rate for the recently completed year was closest to:________.
A. $6.66 per machine-hour
B. $10.50 per machine-hour
C. $8.69 per machine-hour
D. $15.00 per machine-hour

Sagot :

ayokenny2001

Answer:

D. $15.00 per machine hour

Explanation:

The computation of the predetermined overhead rate for the recently completed year is seen below;

First, we will calculate the fixed overhead rate.

Fixed overhead rate = Estimated total fixed manufacturing overhead / Estimated machine - hours

Fixed overhead rate = $838,710 / 72,900

Fixed overhead rate = $11.50

Then,

Predetermined overhead rate = Fixed overhead rate + Variable overhead rate

Predetermined overhead rate = $11.50 + $3.50

Predetermined overhead rate for the recently completed year was closest to $15.00 per machine hour

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.