Simplex Company has the following estimated costs for next year: Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year.If overhead is applied on the basis of machine hours,the overhead rate per hour will be:
A) $3.50.
B) $6.94.
C) $7.63.
D) $8.56.

Question

Simplex Company has the following estimated costs for next year:  Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year.If overhead is applied on the basis of machine hours,the overhead rate per hour will be:
A) $3.50. 
B) $6.94. 
C) $7.63. 
D) $8.56.

Quizplus · Accepted Answer

The Answer of Simplex Company has the following estimated costs for next year:  Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year.If overhead is applied on the basis of machine hours,the overhead rate per hour will be:
A) $3.50. 
B) $6.94. 
C) $7.63. 
D) $8.56.

Simplex Company Has the Following Estimated Costs for Next Year