Sigel Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 103

Essay

Sigel Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 52,000 machine-hours. The estimated variable manufacturing overhead was $3.40 per machine-hour and the estimated total fixed manufacturing overhead was $624,520.
Required:
Compute the company's predetermined overhead rate.

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Definitions:

Organizational Citizenship

Volunteer actions of employees that contribute to the organization's well-being beyond the scope of their job requirements.

Internal

Refers to elements, operations, or factors existing or occurring within an entity or system.

External

pertains to factors, influences, or conditions that exist outside of the individual's personal control or internal environment.

Stable

A term describing something that is steady, not likely to change or fail; often used in reference to economic, emotional, or physical states.