Gilchrist Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 252

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 79,000 machine-hours. The estimated variable manufacturing overhead was $7.38 per machine-hour and the estimated total fixed manufacturing overhead was $2,347,090. The predetermined overhead rate for the recently completed year was closest to:

• A) $37.09 per machine-hour
• B) $36.07 per machine-hour
• C) $7.38 per machine-hour
• D) $29.71 per machine-hour

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Definitions:

Longissimus Capitis

A muscle in the human body, part of the erector spinae muscle group, that extends along the spine and is responsible for head, neck, and spinal movements.

Interspinales

A group of muscles located between the spinous processes of the vertebral column, contributing to spinal stability and posture.

Multifidus

A deep muscle of the spine responsible for stabilizing the vertebrae and maintaining proper posture and spinal alignment.

Psoas Minor

The psoas minor is a slender muscle that runs along the psoas major, involved in flexing the lumbar region of the vertebral column.