VegaTech Industries estimates its manufacturing overhead based on machine hours. The company incurs $6.50 per machine hour for variable manufacturing overhead, and $195,000 per period for fixed manufacturing overhead. The denominator level of activity is 5,000 machine hours. What is the predetermined overhead rate per machine hour?

VegaTech Industries estimates its manufacturing overhead based on machine hours. The company incurs $6.50 per machine hour for variable manufacturing overhead, and $195,000 per period for fixed manufacturing overhead. The denominator level of activity is 5,000 machine hours. What is the predetermined overhead rate 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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