Question

Exercise 15-05 a-c (Video) (Part Level Submission) Crane Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $290,030 for the year, and machine usage is estimated at 126,100 hours. For the year, $310,150 of overhead costs are incurred and 130,500 hours are used. Collapse question part (a) Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.) Manufacturing overhead rate $ per machine hour

Answer 1

Answer: $2.3 per machine hour

Step-by-step explanation:

Based on the information given in the question, the manufacturing overhead rate for the year will be gotten by dividing the manufacturing overhead by the number of machine hours used. This will be:

= $290,030 / 126,100

= $2.3 per machine hour

The manufacturing overhead rate for the year will be $2.3 per machine hour