Question 10 Dhara owns a domino factory that allocates overhead on the basis of machine hours. At the beginning of last year Dhara estimated that the factory would incur a total of $450,000 of fixed manufacturing costs and use 20.000 machine hours. Variable manufacturing overhead was applied at a rate of $13.25 per mh. At the end of the year, Dhara discovered that the factory incurred a total of $500,000 in fixed manufacturing overhead costs and used 25,000 machine hours. What was the predetermined overhead rate for the domino factory?

Question 10 Dhara owns a domino factory that allocates overhead on the basis of machine hours. At the beginning of last year Dhara estimated that the factory would incur a total of $450,000 of fixed manufacturing costs and use 20.000 machine hours. Variable manufacturing overhead was applied at a rate of $13.25 per mh. At the end of the year, Dhara discovered that the factory incurred a total of $500,000 in fixed manufacturing overhead costs and used 25,000 machine hours. What was the predetermined overhead rate for the domino factory?

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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