• February 1st, 2017

Managerial accounting

Paper , Order, or Assignment Requirements

Buckhorn 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
37,000
Estimated variable manufacturing overhead
$7.77 per machine hour
Estimated total fixed manufacturing overhead
$888,000
The actual machine hours for the year turned out to be 35,000.
Required: Compute the company’s predetermined overhead rate.

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