Falstaff Products Estimates Manufacturing Overhead Costs for the Coming Year

question 112

Multiple Choice

Falstaff Products estimates manufacturing overhead costs for the coming year at $500,000. Falstaff will allocate based on machine hours. Falstaff estimates 8,000 machine hours for the coming year. What is the predetermined manufacturing overhead rate?

• A) $62.50 per machine hour
• B) $0.016 per machine hour
• C) $32.00 per machine hour
• D) $6.25 per machine hour

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