The Tomkins Company forecasts that total overhead for the current year will be $1,200,000 and that total machine hours will be 10,000 hours. Year to date, the actual overhead is $800,000 and the actual machine hours are 20,000 hours. If the Tomkins Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? a. $120 per machine hour b. $160 per machine hour c. $40 per machine hour d. $80 per machine hour

The Tomkins Company forecasts that total overhead for the current year will be $1,200,000 and that total machine hours will be 10,000 hours. Year to date, the actual overhead is $800,000 and the actual machine hours are 20,000 hours. If the Tomkins Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? a. $120 per machine hour b. $160 per machine hour c. $40 per machine hour d. $80 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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