The Following Data Are Available for Skyway If Overhead Is Applied Based on Machine Hours,the Predetermined Overhead

question 58

Multiple Choice

The following data are available for Skyway: $$\begin{array} { | l | l | } \hline \text { Estimated machine hours } & 45,000 \text { hours } \\\hline \text { Estimated overhead costs } & \$ 90,000 \\\hline\end{array}$$ If overhead is applied based on machine hours,the predetermined overhead rate is:

• A)$2.00.
• B)$20.00.
• C)$0.50.
• D)200%.

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