A Company Estimates That Overhead Costs for the Next Year

question 165

Essay

A company estimates that overhead costs for the next year will be $3,600,000 for indirect labor,$200,000 for factory utilities,and $21,500 for depreciation on factory machinery.The company uses machine hours as its overhead allocation base.If 764,300 machine hours are planned for this next year,what is the company's plantwide overhead rate?

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Definitions:

Deficit Need

A requirement essential for a person's psychological development and growth, which, if unmet, can lead to feelings of inferiority or weakness.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Esteem

Esteem refers to the respect and admiration that an individual is held in by others or regards themselves with.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.