Asked by Vishaldeep Singh on Apr 28, 2024
Verified
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:
A) $4.00
B) $7.50
C) $4.58
D) $6.54
Predetermined Manufacturing Overhead
A calculation used to estimate the total manufacturing overhead costs for a certain period, often used for budgeting and cost management in production.
Machine-hours
A measure of the amount of time machines are utilized in the production process.
- Become adept at evaluating the predetermined overhead rate utilizing diverse bases, namely direct labor-hours and machine-hours.
- Gain insight into the procedure for the use of a plantwide predetermined manufacturing overhead rate.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
The first step is to calculate the estimated total overhead costs in the two departments.
Machining
Assembly 
The second step is to combine the estimated manufacturing overhead costs in the two departments ($52,500 + $12,900 = $65,400)to calculate the plantwide predetermined overhead rate as follow: 
Machining
Assembly The second step is to combine the estimated manufacturing overhead costs in the two departments ($52,500 + $12,900 = $65,400)to calculate the plantwide predetermined overhead rate as follow: 
Learning Objectives
- Become adept at evaluating the predetermined overhead rate utilizing diverse bases, namely direct labor-hours and machine-hours.
- Gain insight into the procedure for the use of a plantwide predetermined manufacturing overhead rate.
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