Ask Question
5 July, 23:21

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is. a. a. $48 per machine hour. b. $62 per machine hour. c. $45 per machine hour. d. $50 per machine hour.

+2
Answers (1)
  1. 6 July, 00:07
    0
    B) $62 per machine hour

    Explanation:

    To calculate the overhead rate per hour we solve the following equation:

    overhead rate per hour = $15,500,000 / 250,000 machine hours = $62 per machine hour

    if we compare this current rate per machine hour to last year's rate per machine = $16,000,000 / 300,000 machine hours = $53.33, we can determine that Thomlin is overapplying overhead expenses ($62 > $53.33).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers