Question

Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.Estimated MOH $238,000Actual MOH $244,000Estimated machine hrs 20,000Actual machine hrs 22,500The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to:(a) $10.58(b) $11.90(c) $10.84(d) $12.20

Answer 1

B.) $11.90

Step-by-step explanation:

Predetermined manufacturing overhead rate are based on the estimates made by the company.

So the calculation should be:

Estimated MOH of $238,000 divided by Estimated Machine Hours of 20,000.

Giving us the result of $11.90

(238,000 / 20,000 = 11.90)