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question 48

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Use the following information to answer questions

A company expected its annual overhead costs to be $750,000 and machine hours to equal 100,000 hours. Actual overhead was $745,000, and actual machine hours totalled 97,000 hours.

-How much is the company's predetermined overhead rate to the nearest cent, assuming overhead is applied based on machine hours?


Definitions:

Total Dollar Amount

The complete sum of money involved in a transaction, including all costs and taxes.

Level of Activity

A measure used in accounting and production to determine the extent to which a business operation is being utilized, often influencing cost behavior.

Direct Materials Cost

The cost of materials that are an integral part of the finished product.

Units Produced

The total number of units of product a company manufactures over a specific period of time.

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