Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.
Estimated machine hours
|
75,000
|
|
Estimated variable manufacturing overhead
|
$4.50
|
per machine hour
|
Estimated total fixed manufacturing overhead
|
$825,000
|
|
The actual machine hours for the year turned out to be 77,000.
Required:
Compute the company's predetermined overhead rate.