for any feedback on if its incorrect.
Cindy Inc. estimates that its employees will utilize 125,000 machine hours during the coming year. Total overhead costs are estimated to be $4,500,000 and direct labor hours are estimated to be 100,000. Actual machine hours are 120,000. Actual labor hours are 75,000.
If Cindy Inc. allocates overhead based on machine hours, what is the predetermined manufacturing overhead rate?
4,500,000 / 125,000 = 36 per machine hour
36 x 125,000 = 750,000 cost for the year
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