Machine hours for applying overhead rate


The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?

a. $75 per machine hour

b. $68 per machine hour

c. $78 per machine hour

d. $71 per machine hour

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Accounting Basics: Machine hours for applying overhead rate
Reference No:- TGS087282

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