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The Anderson Company forecasts that total overhead for the current year will be $15,000,000 and total machine hours will be 200,000 hours. However, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is predetermined overhead rate? Select one: a. $80 per machine hour b. $150 per machine hour c. $75 per machine hour d. $40 per machine hour

The Anderson Company forecasts that total overhead for the current year will be $15,000,000 and total machine hours will be 200,000 hours. However, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is predetermined overhead rate? Select one: a. $80 per machine hour b. $150 per machine hour c. $75 per machine hour d. $40 per machine hour

Principles of Cost Accounting
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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The Anderson Company forecasts that total overhead for the current year will be $15,000,000 and total machine hours will be 200,000 hours. However, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is predetermined overhead rate? Select one: a. $80 per machine hour b. $150 per machine hour c. $75 per machine hour d. $40 per machine hour
Transcribed Image Text:The Anderson Company forecasts that total overhead for the current year will be $15,000,000 and total machine hours will be 200,000 hours. However, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is predetermined overhead rate? Select one: a. $80 per machine hour b. $150 per machine hour c. $75 per machine hour d. $40 per machine hour
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