THE ARYAN CORPORATION FORECASTS THAT TOTAL OVERHEAD FOR THE CURRENT YEAR WILL BE $12,600,000 AND TOTAL MACHINE HOURS WILL BE 210,000 HOURS. HOWEVER, THE ACTUAL OVERHEAD IS $6,400,000 AND THE ACTUAL MACHINE HOURS ARE 120,000 HOURS. IF THE COMPANY USES A PREDETERMINED OVERHEAD RATE BASED ON MACHINE HOURS FOR APPLYING OVERHEAD, WHAT IS PREDETERMINED OVERHEAD RATE? SELECT ONE: A) $58 PER MACHINE HOUR B) $60 PER MACHINE HOUR C) $52 PER MACHINE HOUR D) $48 PER MACHINE HOUR

THE ARYAN CORPORATION FORECASTS THAT TOTAL OVERHEAD FOR THE CURRENT YEAR WILL BE $12,600,000 AND TOTAL MACHINE HOURS WILL BE 210,000 HOURS. HOWEVER, THE ACTUAL OVERHEAD IS $6,400,000 AND THE ACTUAL MACHINE HOURS ARE 120,000 HOURS. IF THE COMPANY USES A PREDETERMINED OVERHEAD RATE BASED ON MACHINE HOURS FOR APPLYING OVERHEAD, WHAT IS PREDETERMINED OVERHEAD RATE? SELECT ONE: A) $58 PER MACHINE HOUR B) $60 PER MACHINE HOUR C) $52 PER MACHINE HOUR D) $48 PER MACHINE HOUR

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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If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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The Aakash Company forecasts that total overhead for the current year will be $17,000,000 and total machine hours will be 250,000 hours. However, the actual overhead is $8,100,000 and the actual machine hours are 150,000 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. $68 per machine hour
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