Bob Burgers allocates manufacturing overhead to jobs based on machine hours The

Question

Bob Burgers allocates manufacturing overhead to jobs based on machine hours The company has the following estimated cosls for the upcorning year Direct materials used Dirsct labor costs Wages of factory janitors Sales supervisor salary Utilities for factory Rent on factory building Advertising expense 50,000 70,400 $39,500 51,500 $16,100 $13,800 S5,830 The company estimates that 2,080 direct labor hours will be worked in the upcoming year, whie 1,600 machine hours will be used during the year. The predetermined mnufacturing overhead rate per machine hour will be (Round your answer to the nearest cent.) OA. $154 46 OB. $1869 O C. $7921 OD. $43.38

Explanation / Answer

Answer : Option D $43.38

predetermined manufacturing overhead rate per machine hour = total estimated manufacturing overhead / total estimated machine hours

total estimated manufacturing overhead = Wages of factory janitors +Utilities for factory + Rent on factory building

total estimated machine hours = 1600

= (39500+16100+13800)/1600 = 43.38

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