Chapter 3, Problem 3.14BE

Please provide the accurate answer to this general accounting problem using appropriate methods.

Compute the company's plantwide predetermined overhead rate for the year

Please explain the solution to this financial accounting problem using the correct financial principles.

None

Goods manufacturing during the current year

Financial accounting 4.32

Financial Accounting

The Tom Corporation forecasts that total overhead for the current year will be $1,500,000 and that total machine hours will be 12,500 hours. Year to date, the actual overhead is $950,000, and the actual machine hours are 18,000 hours. If Tom Corporation uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?

I need guidance with this general accounting problem using the right accounting principles.