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What was the overhead rate per machine hour

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Reference no: EM132655026

Problem 1: COMPUTEX, INC manufactures bedside data-entry terminals for us in hospitals. In 2013 the company used 250,000 direct labor hours for a total of $12,000,000 and 500,000 machine hours to produce 500 terminals. The company uses machine hours to attach overhead to each terminal. If overhead amounted to $10,000,000 in 2013, what was the overhead rate per machine hour?

A. $20
B. $40
C. $20,000
D. Cannot be determined with the information provided.

Reference no: EM132655026

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