Jackson Inc. listed the following data for 2016: Budgeted factory overhead Budge

Question

Jackson Inc. listed the following data for 2016: Budgeted factory overhead Budgeted direct labor hours Budgeted machine hours Actual factory overhead Actual direct labor hours Actual machine hours Round calculations to 2 significant digits $1,271,000 82,000 41,000 1,201,000 86,300 39,400 Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2016 is: O $28.42 per machine hour O$32.25 per machine hour O $3100 per machine hour. O $33.50 per machine hour O$3741 per machine hour

Explanation / Answer

Predetermine overhead rate = Budgeted factory overhead/Budgeted machine hour

= 1271000/41000

Predetermine overhead rate = 31 per machine hour

So answer is c) $31.00 per machine hour

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