6.- Secrease Corporation uses machine-hours as the allocation base for applying its manufacturing overhead. Estimated manufacturing overhead cost for the year Capacity Estimated amount of the allocation base for the year Amount of the allocation base for the actual output of the year Actual manufacturing overhead cost for the year $589,000 All of the company's manufacturing overhead is fixed. What is the predetermined overhead rate based on capacity to 2 decimal places? a) $6.69 b) $5.40 c) $5.35 d) $5.50 $594,000 110,000 machine-hours 108,000 machine-hours 88,000 machine-hours

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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---THA
CO
300
tab
DS loc
BSC
6.- Secrease Corporation uses machine-hours as the allocation base for applying its
manufacturing overhead.
Estimated manufacturing overhead cost for
the year
Capacity
Estimated amount of the allocation base for
the year
Amount of the allocation base for the actual
output of the year
Actual manufacturing overhead cost for the
year
$594,000
110,000 machine-hours
108,000 machine-hours
88,000 machine-hours
$589,000
All of the company's manufacturing overhead is fixed.
What is the predetermined overhead rate based on capacity to 2 decimal places?
a) $6.69
b) $5.40
c) $5.35
d) $5.50
Transcribed Image Text:---THA CO 300 tab DS loc BSC 6.- Secrease Corporation uses machine-hours as the allocation base for applying its manufacturing overhead. Estimated manufacturing overhead cost for the year Capacity Estimated amount of the allocation base for the year Amount of the allocation base for the actual output of the year Actual manufacturing overhead cost for the year $594,000 110,000 machine-hours 108,000 machine-hours 88,000 machine-hours $589,000 All of the company's manufacturing overhead is fixed. What is the predetermined overhead rate based on capacity to 2 decimal places? a) $6.69 b) $5.40 c) $5.35 d) $5.50
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