Question

Thomlin Company forecasts that total overhead for the current year will be $15,030,000 with 167,000 total machine hours. Year to date, the actual overhead is $8,184,000, and the actual machine hours are 93,000 hours. The predetermined overhead rate based on machine hours is Round the answer to the nearest dollar. a.$49 per machine hour b.$88 per machine hour c.$90 per machine hour d.$162 per machine hour

Answer 1

Answer: c.$90 per machine hour

Step-by-step explanation:

The predetermined overhead rate is the forecasted cost per (in this case) machine hour.

Formula is:

= Forecasted total overhead / Forecasted total machine hours

= 15,030,000 / 167,000

= $90 per machine hour