Paulson Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The company has provided the following estimated costs for next year: Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year.The predetermined overhead rate per machine-hour will be:

Question

Paulson Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The company has provided the following estimated costs for next year:  Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year.The predetermined overhead rate per machine-hour will be:

Quizplus · Accepted Answer

11eaaee8_676e_50d5_933a_b7cfc8f4f294_TB5186_00 Predetermined overhead rate = $42,000 F1F1F1S1F1F1F10 20,000 MHs = $2.10 per MH

Paulson Company Uses a Predetermined Overhead Rate Based on Machine-Hours