Westbrook Manufacturing expects total factory overhead for the upcoming year to be $8,925,000 with an estimated 85,000 machine hours. After six months, the actual overhead is $4,250,000 with 41,000 actual machine hours. What is the predetermined overhead rate based on machine hours? (Round the factory overhead rate to the nearest dollar.) a. $105 per machine hour b. $104 per machine hour c. $98 per machine hour d. $103 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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Westbrook Manufacturing expects total factory overhead
for the upcoming year to be $8,925,000 with an estimated
85,000 machine hours. After six months, the actual
overhead is $4,250,000 with 41,000 actual machine hours.
What is the predetermined overhead rate based on machine
hours? (Round the factory overhead rate to the nearest
dollar.)
a. $105 per machine hour
b. $104 per machine hour
c. $98 per machine hour
d. $103 per machine hour
Transcribed Image Text:Westbrook Manufacturing expects total factory overhead for the upcoming year to be $8,925,000 with an estimated 85,000 machine hours. After six months, the actual overhead is $4,250,000 with 41,000 actual machine hours. What is the predetermined overhead rate based on machine hours? (Round the factory overhead rate to the nearest dollar.) a. $105 per machine hour b. $104 per machine hour c. $98 per machine hour d. $103 per machine hour
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