Tech Tools Manufacturing had the following estimates for the year: • Estimated direct labor hours = 120,000 == • Estimated manufacturing overhead = $500,000 Estimated machine hours = 30,000 The actual figures for the year were: Actual direct labor hours == 121,500 Actual machine hours = 32,500 Actual manufacturing overhead = $525,000 They determine overhead based upon machine hours. What is the predetermined overhead rate?

Tech Tools Manufacturing had the following estimates for the year: • Estimated direct labor hours = 120,000 == • Estimated manufacturing overhead = $500,000 Estimated machine hours = 30,000 The actual figures for the year were: Actual direct labor hours == 121,500 Actual machine hours = 32,500 Actual manufacturing overhead = $525,000 They determine overhead based upon machine hours. What is the predetermined overhead rate?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...

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