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Predetermined overhead rate

Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of 60,600. Actual manufacturing overhead for the year amounted to 59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was 10.10 per machine-hour.
Reference: 3-5

The predetermined overhead rate was based on how many estimated machine-hours?

5,842
5,783
6,000
5,900

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Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on ...

Solution Summary

Calculates the estimated machine-hours on which predetermined overhead rate is calculated.

$2.19