Finchley Manufacturing applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $320,400 for the year, and machine usage is estimated at 140,000 hours. For the year, $340,750 of overhead costs is incurred, and 145,600 hours are used. Compute the manufacturing overhead rate for the year.

Finchley Manufacturing applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $320,400 for the year, and machine usage is estimated at 140,000 hours. For the year, $340,750 of overhead costs is incurred, and 145,600 hours are used. Compute the manufacturing overhead rate for the year.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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