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17 October, 15:13

Avatar corporation uses a predetermined rate to apply overhead. at the beginning of the year, avatar estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000. actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. what is the predetermined overhead rate per machine hour for avatar?

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  1. 17 October, 17:59
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    Hi there

    predetermined rate=estimated overhead cost:estimated machine hours

    So

    predetermined rate=240000:10000

    predetermined rate=24 per machine hour

    Good luck!
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