Brothern Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 36

Multiple Choice

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

• A) $25.37 per machine-hour
• B) $27.13 per machine-hour
• C) $6.76 per machine-hour
• D) $20.37 per machine-hour

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Definitions:

PTO Gears

Gears associated with the Power Take-Off system, which allows auxiliary equipment to draw power from a vehicle's engine.

Mainshaft Washers

Washers placed on the mainshaft of a gearbox or transmission system to ensure proper spacing and prevent metal-to-metal contact.

Low Oil Level

A condition indicating that the volume of oil in a system, such as an engine, is below the recommended threshold, potentially leading to damage or failure.

Improper Towing

The act of towing a vehicle or object in a manner that is unsafe or does not comply with legal and manufacturer guidelines, risking damage or accidents.