Question

Rager 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 $100,040. Actual manufacturing overhead for the year amounted to $102,500 and actual machine-hours were 7,200. The company's predetermined overhead rate for the year was $10.25 per machine-hour. The predetermined overhead rate was based on how many estimated machine- hours? 8,500 9,760 9,600 8,200

Answer 1

machine hours= 9760 hours

Step-by-step explanation:

Giving the following information:

Rager Corporation applies manufacturing overhead based on machine-hours.

The company based its predetermined overhead rate on the total estimated overhead of $100,040. The company's predetermined overhead rate for the year was $10.25 per machine-hour.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

10.25= 100,040/ total amount of allocation base

machine hours= 100,040/10.25= 9760 hours