Bolander Corporation Uses a Job-Order Costing System with a Single

question 2

Multiple Choice

Bolander Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job M825 was completed with the following characteristics:
The predetermined overhead rate is closest to:

• A) $8.80 per machine-hour
• B) $6.50 per machine-hour
• C) $2.30 per machine-hour
• D) $4.20 per machine-hour

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