Sandler Corporation bases its predetermined overhead rate on the estimated machine hours
Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year.
Data for the upcoming year appear below.
| Estimated machine hours | 75,000 | |
| Estimated variable manufacturing overhead | $4.50 | per machine hour |
| Estimated total fixed manufacturing overhead | $825,000 |
The actual machine hours for the year turned out to be 77,000.
Required:
Compute the company’s predetermined overhead rate.
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