Flambe Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 53

Multiple Choice

Flambe Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 22,000 machine-hours. The estimated variable manufacturing overhead was $8.65 per machine-hour and the estimated total fixed manufacturing overhead was $609,400. The predetermined overhead rate for the recently completed year was closest to:

• A) $36.35 per machine-hour.
• B) $27.70 per machine-hour.
• C) $33.32 per machine-hour.
• D) $8.65 per machine-hour.

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