Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $587,500 and machine hours would total 23,500. By 20x1 year-end, actual overhead totaled $620,900, and actual machine hours were 33,400. On the basis of this information, the 20x1 predetermined overhead rate was: $0.04 per machine hour. $0.05 per machine hour. $20 per machine hour. $21 per machine hour. $25 per machine hour.

 Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $587,500 and machine hours would total 23,500. By 20x1 year-end, actual overhead totaled $620,900, and actual machine hours were 33,400. On the basis of this information, the 20x1 predetermined overhead rate was:
 
$0.04 per machine hour.
 
$0.05 per machine hour.
 
$20 per machine hour.
 
$21 per machine hour.
 
$25 per machine hour.
                                       


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