Kelsh 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: Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year.The predetermined overhead rate per hour will be:
A) $3.40.
B) $6.40.
C) $6.80.
D) $8.20.

Question

Kelsh 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:  Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year.The predetermined overhead rate per hour will be:
A) $3.40. 
B) $6.40. 
C) $6.80. 
D) $8.20.

Quizplus · Accepted Answer

The Answer of Kelsh 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:  Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year.The predetermined overhead rate per hour will be:
A) $3.40. 
B) $6.40. 
C) $6.80. 
D) $8.20.

Kelsh Company Uses a Predetermined Overhead Rate Based on Machine