Simoneaux Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 27,000 machine-hours. The estimated variable manufacturing overhead was $8.30 per machine-hour and the estimated total fixed manufacturing overhead was $720,900. Find the predetermined overhead rate for the recently completed year.

Simoneaux Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 27,000 machine-hours. The estimated variable manufacturing overhead was $8.30 per machine-hour and the estimated total fixed manufacturing overhead was $720,900. Find the predetermined overhead rate for the recently completed 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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