Smith Paints allocates overhead based on machine hours. Selected data for the most recent year follow.
| Estimated manufacturing overhead cost | $250187 |
| Actual manufacturing overhead cost | $245126 |
| Estimated machine hours | 20668 |
| Actual machine hours | 20753 |
The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The predetermined manufacturing overhead rate per machine hour is? and explain if you can
Answer : predetermined manufacturing overhead rate per machine hour is $ 12.10
Working notes for the above answer is as follow
We have been provided with the information as follow
Estimated manufacturing overhead cost is $ 245126
Estimated machine hours is $ 20668
Actual machine hours is $ 20753
we do calcu;lation as follow
Total Estimated manufacturing overhead cost / Total Estimated machine hours
=250187 / 20668
=12.10
