BC Company listed the following data for the current year: Budgeted factory overhead$1,059,500 Budgeted direct labor hours65,000 Budgeted machine hours25,000 Actual factory overhead1,040,300 Actual labor hours67,000 Actual machine hours24,000 Assuming ABC applied overhead based on machine hours, the company's predetermined overhead rate for the year is: Multiple Choice $43.35 per machine hour. $15.80 per machine hour. $15.53 per machine hour. $15.81 per machine hour. $42.38 per machine hour.

Overhead costs is the cost that refer to all of the indirect expenses of running the business.

Answered: Multiple Choice $43.35 per machine…

Multiple Choice $43.35 per machine hour. $15.80 per machine hour. $15.53 per machine hour. $15.81 per machine hour. $42.38 per machine hour.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

BC Company listed the following data for the current year:


	Budgeted factory overhead	$1,059,500
	Budgeted direct labor hours	65,000
	Budgeted machine hours	25,000
	Actual factory overhead	1,040,300
	Actual labor hours	67,000
	Actual machine hours	24,000

Assuming ABC applied overhead based on machine hours, the company's predetermined overhead rate for the year is:

Multiple Choice

$43.35 per machine hour.
$15.80 per machine hour.
$15.53 per machine hour.
$15.81 per machine hour.
$42.38 per machine hour.

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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