Question

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $357,000 Estimated machine-hours 8,500 Actual manufacturing overhead $358,000 Actual machine-hours 8,560 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is :

Answer 1

The predetermined overhead rate is 42 $/h.

Step-by-step explanation:

The predetermined overhead rate is calculated by the estimated manufacturing overhead divided by the estimated machine hours.

Predetermined overhead rate = $357000/8500h = 42 $/h