Wednesday 3 October 2012

Falstaff Products estimates manufacturing overhead costs for the coming year at $500,000.

Falstaff Products estimates manufacturing overhead costs for the coming year at $500,000. Falstaff will allocate based on machine hours. Falstaff estimates 8,000 machine hours for the coming year. What is the predetermined manufacturing overhead rate?

·         $0.016 per machine hour

·         $32.00 per machine hour

·         $62.50 per machine hour

·         $6.25   per machine hour



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