Felton Quality Productions Uses a Predetermined Overhead Allocation Rate Based

question 36

Multiple Choice

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours.It has provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Actual manufacturing overhead costs incurred } & \$ 100,000 \\\hline \text { Manufacturing overhead costs allocated to production } & \$ 56,000 \\\hline \text { Actual direct materials cost } & \$ 220,000 \\\hline \text { Actual direct labor cost } & \$ 40,000 \\\hline \text { Actual machine hours } & 32,000 \text { hours } \\\hline\end{array}$$ Based on the above information,calculate the predetermined overhead allocation rate applied by Felton Quality.(Round your answer to the nearest cent. )

• A)$1.75 per machine hour
• B)$3.13 per machine hour
• C)$6.88 per machine hour
• D)$1.25 per machine hour

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