Jetform Manufacturing allocates overhead costs based on machine hours. The total manufacturing overhead is $36,000, and the total machine hours are 900. What is the cost allocation per machine hour? Options: (a) $30 (b) $40 (c) $50 (d) $60

Jetform Manufacturing allocates overhead costs based on machine hours. The total manufacturing overhead is $36,000, and the total machine hours are 900. What is the cost allocation per machine hour? Options: (a) $30 (b) $40 (c) $50 (d) $60

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2EA: Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2...

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Please given correct answer for General accounting question I need step by step explanation

Jetform Manufacturing allocates overhead costs based on
machine hours. The total manufacturing overhead is $36,000,
and the total machine hours are 900. What is the cost
allocation per machine hour?
Options:
(a) $30
(b) $40
(c) $50
(d) $60

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Solution
What is the predetermined overhead rate ?
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