If Estimated Production Overhead in the Assembly Department Is $240,000

question 22

Multiple Choice

If estimated production overhead in the assembly department is $240,000 and actual overhead is $216,000 and estimated machine hours in the assembly department are 60,000 hours and actual machine hours are 62,000 hours, using normal costing what is the overhead allocation rate?

• A) $3.60 per machine hour
• B) $4 per machine hour
• C) $3.87 per machine hour
• D) $3.49 per machine hour

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