The Thomlin Company Forecasts That Total Overhead for the Current

question 22

Multiple Choice

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

• A) $48 per machine hour
• B) $62 per machine hour
• C) $45 per machine hour
• D) $50 per machine hour

---

Definitions:

Base Year Amount

A reference figure used in economic and financial analysis, representing a specific year's data against which other years' data are compared.

Current Year Amount

The total financial figures, such as revenue, expenses, or profits, calculated for the company's ongoing fiscal year.

Percentage Increase

The rate of growth of a quantity, expressed as a fraction of its previous value and shown as a percentage.