Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year,Carlson estimated its overhead costs at $240,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $249,280,actual direct labour hours were 41,000,and actual machine hours were 11,000. What is the predetermined overhead rate per machine hour for Carlson?
A)$5.85
B)$6.08
C)$22.66
D)$24.00

Question

Quizplus · Accepted Answer

The predetermined overhead rate per machine hour is calculated by dividing the estimated overhead costs by the estimated machine hours. Therefore, $240,000 / 10,000 machine hours = $24.00 per machine hour.

Carlson Company Uses a Predetermined Rate to Apply Overhead