BC Company listed the following data for the current year: Budgeted factory overhead$1,059,500 Budgeted direct labor hours65,000 Budgeted machine hours25,000 Actual factory overhead1,040,300 Actual labor hours67,000 Actual machine hours24,000 Assuming ABC applied overhead based on machine hours, the company's predetermined overhead rate for the year is: Multiple Choice $43.35 per machine hour. $15.80 per machine hour. $15.53 per machine hour. $15.81 per machine hour. $42.38 per machine hour.

Overhead costs is the cost that refer to all of the indirect expenses of running the business.

Answered: Multiple Choice $43.35 per machine…

Multiple Choice $43.35 per machine hour. $15.80 per machine hour. $15.53 per machine hour. $15.81 per machine hour. $42.38 per machine hour.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...

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Question

100%

BC Company listed the following data for the current year:


	Budgeted factory overhead	$1,059,500
	Budgeted direct labor hours	65,000
	Budgeted machine hours	25,000
	Actual factory overhead	1,040,300
	Actual labor hours	67,000
	Actual machine hours	24,000

Assuming ABC applied overhead based on machine hours, the company's predetermined overhead rate for the year is:

Multiple Choice

$43.35 per machine hour.
$15.80 per machine hour.
$15.53 per machine hour.
$15.81 per machine hour.
$42.38 per machine hour.

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