Acton Corporation, which applies manufacturing overhead on the
basis of machine-hours, has provided the following data for its
most recent year of operations.
|Estimated manufacturing overhead||$176,700|
|Actual manufacturing overhead||$168,100|
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The predetermined overhead rate is closest to:
Predetermined overhead rate=Estimated manufacturing overheads/Estimated Machine Hours
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