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Calculate the predetermined overhead rate

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Question - Housholder Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.

Estimated total fixed manufacturing overhead from the beginning of the year

$310,000

Estimated activity level from the beginning of the year

20,000 machine-hours

Actual total fixed manufacturing overhead

$338,000

Actual activity level

18,300 machine-hours

Calculate the predetermined overhead rate?

$18.47

$15.50

$16.94

$16.90

Reference no: EM132215680

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