Gilchrist Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 24

Multiple Choice

Gilchrist 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 Corporation estimated the machine-hours for the upcoming year at 37,200 machine-hours. The estimated variable manufacturing overhead was $5.94 per machine-hour and the estimated total fixed manufacturing overhead was $1,028,580. The predetermined overhead rate for the recently completed year was closest to:

• A) $33.59 per machine-hour
• B) $32.59 per machine-hour
• C) $5.94 per machine-hour
• D) $27.65 per machine-hour

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