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,what will be the overhead rate per hour?
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,what will be the overhead rate per hour?
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,what will be the overhead rate per hour?
A) $3.50. 
B) $6.94. 
C) $7.63. 
D) $8.56.

Simplex Company Has the Following Estimated Costs for Next Year