treasurers, inc., a manufacturer of gift articles, uses a single plantwide rate to allocate indirect costs with machine hours as the allocation base. estimated overhead costs for the year are $ 8 comma 000 comma 000. estimated machine hours are 35 comma 000. during the year, the actual machine hours used were 31 comma 000. calculate the predetermined overhead allocation rate. (round your answer to the nearest dollar.)
a) $163
b) $109
c) $280
d) $82

predetermined overhead allocation rate is $228 per hour

Explanation:

given data

Estimated over head costs = $8,000,000

Estimated machine hours = 35,000

actual machine hours = 31,000

to find out

predetermined overhead allocation rate

solution

we know that predetermined overhead allocation rate is express as

predetermined overhead allocation rate =

put here value

predetermined overhead allocation rate =

predetermined overhead allocation rate = $228.571

so predetermined overhead allocation rate is $228 per hour

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

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