Paulson Corporation Uses a Predetermined Overhead Rate Based on Machine-Hours

question 39

Multiple Choice

Paulson Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year. The predetermined overhead rate per machine-hour will be:

• A)$1.60
• B)$2.10
• C)$1.00
• D)$1.05

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