Question

George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost ​$235,000 Actual manufacturing overhead cost ​$244,200 Estimated machine hours ​20,300 Actual machine hours ​22,700 The estimates were made as of the beginning of the​ year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to

Answer 1

$11.58 per machine hour

Step-by-step explanation:

Given that: Estimated Manufacturing overhead cost =$235,000, Actual manufacturing overhead cost = ​$244,200 Estimated machine hours ​= 20,300, Actual machine hours= ​22,700

The predetermined manufacturing overhead rate per machine hour = Estimated manufacturing overhead cost / Estimated machine hours

= $235,000 / 20,300

= $11.5763

= $11.58 per machine hour