Question

Jackson Inc. listed the following data for 2019: Budgeted factory overhead $1,272,000 Budgeted direct labor hours 80,000 Budgeted machine hours 40,000 Actual factory overhead 1,201,400 Actual direct labor hours 86,700 Actual machine hours 39,800 Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 (round calculations to 2 significant digits) is:

Answer 1

Answer: $31.80 per machine hour

Step-by-step explanation:

Based on the information that have been given in the question, since the overhead was applied by Jackson Inc., therefore, the firm's predetermined overhead rate will be:

= Budgeted factory overhead / Budgeted machine hours

= $1,272,000 / 40000

= $31.80 per machine hour