Determining overhead rate


Jones Inc. calculates its predetermined overhead rate yearly on the basis of machine hours. At the starting of the year it estimated that its net manufacturing overhead would be $900,000 and the net machine hours (mh) would be 45,000. Its actual total manufacturing overhead for the year was $995,000 and its actual machine hrs were 50,000.

Determine the predetermined overhead rate for the year? Show calculations.

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Accounting Basics: Determining overhead rate
Reference No:- TGS019137

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