Felton Quality Productions Uses a Predetermined Overhead Allocation Rate Based

question 65

Multiple Choice

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours.It has provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Actual manufacturing overhead costs incurred } & \$ 100,000 \\\hline \text { Manufacturing overhead costs allocated to production } & \$ 46,000 \\\hline \text { Actual direct materials cost } & \$ 230,000 \\\hline \text { Actual direct labor cost } & \$ 50,000 \\\hline \text { Actual machine hours } & 32,000 \text { hours } \\\hline\end{array}$$
Based on the above information,calculate the predetermined overhead allocation rate applied by Felton Quality.(Round your answer to the nearest cent.)

• A) $1.44 per machine hour
• B) $3.13 per machine hour
• C) $7.19 per machine hour
• D) $1.56 per machine hour

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