Answer:
$5.32 per Machine hours
Explanation:
Data provided:
Estimated manufacturing overhead = $532,000
Estimated direct labor hours = 25,000
Estimated machine hours (MHR) = 100,000
Now,
Since, the managers allocated the overhead based on the machine hours
therefore,
the predetermined manufacturing rate for the coming year will be
= [tex]\frac{\textup{Estimated manufacturing overhead}}{\textup{Estimated machine hours}}[/tex]
or
= [tex]\frac{532,000}{100,000}[/tex]
or
= $5.32 per Machine hours
