Given budgeted overhead cost of $250,000 and budgeted machine-hours of 125,000, the overhead rate is $ per machine-hour. (Enter your answer as a whole number.)
Question
Given budgeted overhead cost of per machine-hour. (Enter your answer as a whole number.)
Solution
To calculate the overhead rate per machine-hour, you need to divide the budgeted overhead cost by the budgeted machine-hours.
Here are the steps:
- Identify the budgeted overhead cost. In this case, it is $250,000.
- Identify the budgeted machine-hours. In this case, it is 125,000 hours.
- Divide the budgeted overhead cost by the budgeted machine-hours.
So, 2
Therefore, the overhead rate is $2 per machine-hour.
Similar Questions
Use the following information to answer the next question:Estimated manufacturing overhead$520,000Estimated machine hours16,000Actual machine hours worked15,000Actual overhead costs incurred: Indirect materials$180,000 Indirect labour$135,000 Utilities$ 40,000 Insurance$ 20,000 Rent$150,000If the company uses a predetermined overhead rate to apply overhead, manufacturing overhead applied would be:Question 2Select one:a.$487,500b.$520,000c.$525,000d.$554,667
Estimated manufacturing overhead$450,000Estimated direct labor hours150,000Actual manufacturing overhead$405,000Actual direct labor hours180,000 Based on this information, the predetermined overhead rate per direct labor hour is $. (Enter your answer as a whole number.)
Fill in the Blank QuestionFill in the blank question.A manufacturing company has budgeted direct labor hours of 600 at a variable overhead rate per direct labor hour of $20. The budgeted fixed cost is $500 per month. The total budgeted overhead cost for the month will be $_.
ill in the Blank QuestionFill in the blank question.A manufacturing company has variable overhead costs of $2.50 per unit and fixed costs of $5,000 per month. Each unit requires 4 hours of direct labor and the company expects to produce 2,000 units each month. The standard overhead rate will be $ per direct labor hour.
Multiple Choice Question Estimated manufacturing overhead$500,000Estimated direct labor cost$250,000Actual manufacturing overhead$720,000Actual direct labor cost$300,000 Based on this information, the predetermined overhead rate per direct labor dollar is:Multiple choice question.$2.88$2.00$1.67 $2.40
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.