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Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours80,000Total fixed manufacturing overhead cost$312,000Variable manufacturing overhead per machine-hour$2.10
Recently, Job T629 was completed with the following characteristics:
Number of units in the job50Total machine-hours200
The predetermined overhead rate is closest to:
a. $8.10 per machine-hour
b. $2.10 per machine-hour
c. $3.90 per machine-hour
d. $6.00 per machine-hour
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Answers: 1
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