The Thomlin Company forecasts that total overhead for the current year will be $11,799,483 and that total machine hours will be 171,995 hours. Year to date, the actual overhead is $7,659,310 and the actual machine hours are 91,634 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
Select the correct answer.
- $84 per machine hour
- $69 per machine hour
- $45 per machine hour
- $129 per machine hour