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Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine- hours for the upcoming year at 67,000 machine-hours. The estimated variable manufacturing overhead was $5.62 per machine-hour and the estimated total fixed manufacturing overhead was $1,746,690. The predetermined overhead rate for the recently completed year was closest to:
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine- hours for the upcoming year at 67,000 machine-hours. The estimated variable manufacturing overhead was $5.62 per machine-hour and the estimated total fixed manufacturing overhead was $1,746,690. The predetermined overhead rate for the recently completed year was closest to:Multiple Choice
$5.62 per machine-hour
$31.69 per machine-hour
$30.69 per machine-hour
$26.07 per machine-hour
Thepredetermined overhead ratefor the recently completed year is closest to $26.07 per machine-hour.To calculate the predetermined overhead rate, we need to divide the estimatedtotal manufacturing overheadby the estimated machine-hours for the upcoming year.The estimatedvariable manufacturing overheadper machine-hour is given as $5.62.The estimated total fixed manufacturing overhead is given as $1,746,690.The estimatedmachine-hoursfor the upcoming year is given as 67,000 machine-hours.To calculate the predetermined overhead rate, we can use the following formula:Predetermined overhead rate = (Estimated variable manufacturing overhead + Estimated total fixed manufacturing overhead) / Estimated machine-hoursPlugging in the given values:Predetermined overhead rate = ($5.62 + $1,746,690) / 67,000 machine-hoursPredetermined overhead rate = $1,746,695.62 / 67,000 machine-hoursPredetermined overhead rate ≈ $26.07 per machine-hourTherefore, thepredetermined overhead ratefor the recently completed year is closest to $26.07 per machine-hour.Know more about thepredetermined overhead rateclick here:brainly.com/question/29829712#SPJ11...