Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimated variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one: O a. $10.80 O b. $9.80 O c. $0.10 O d. $0.80

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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O e. $2,636
Company XYZ uses machine hours to allocate its manufacturing overhead. The company
estimates that total machine hours to be operated next year are 190,000 hours. The estimated
variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000.
Calculate the predetermined overhead rate.
Select one:
O a. $10.80
O b. $9.80
O c. $0.10
O d. $0.80
O e. None of the answers given
Finish attempt .
ge
OADUa
Prisc
F9
F6
F7
F3
F4
F2
23
24
8 6
3
Transcribed Image Text:O e. $2,636 Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimated variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one: O a. $10.80 O b. $9.80 O c. $0.10 O d. $0.80 O e. None of the answers given Finish attempt . ge OADUa Prisc F9 F6 F7 F3 F4 F2 23 24 8 6 3
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