A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs)is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The predetermined overhead rate is closest to:
A)$21.90 per hour
B)$21.80 per hour
C)$21.16 per hour
D)$21.26 per hour

Question

A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs)is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below:  The following data pertain to operations for the most recent period:  The predetermined overhead rate is closest to:
A)$21.90 per hour 
B)$21.80 per hour 
C)$21.16 per hour 
D)$21.26 per hour

Quizplus · Accepted Answer

Predetermined overhead rate = Budgeted total overhead ÷ Denominator level of activity

A Furniture Manufacturer Uses a Standard Costing System in Which