Answer:
POAR = $33.94 per machine hour
Step-by-step explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c.
The overheads are charged to units produced using the pre-determined overhead absorption rate, which is computed as follows:
Pre-determined overhead absorption rate (POAR)= Estimated Overhead/Estimated machine hours
POAR = 157,800/4,650 machine hours = $ 33.94 per machine hour
POAR = $33.94 per machine hour