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If the denominator activity for the year was 40,000 machine-hours, and if 36,400 machine-hours were allowed for the year's production, then the predetermined overhead rate per machine hour was...

At the end of the year, a company's Manufacturing Overhead account contained the following data:

Manufacturing Overhead
Actual $82,140 $78,260 Applied
$3,880

If the denominator activity for the year was 40,000 machine-hours, and if 36,400 machine-hours were allowed for the year's production, then the predetermined overhead rate per machine hour was:

a $2.15
b $1.96
c $2.26
d $2.05

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A predetermined overhead rate is used to apply overhead to jobs. It is determined before ...

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You will find the answer to this puzzling question inside...

$2.19