Answer:
Predetermined overhead rate for machine hour = $2
Explanation:
We know,
predetermined overhead rate for machine hour = [tex]\frac{total overhead cost}{total machine hour }[/tex]
Given,
Total overhead cost = $500,000
Total machine hours = 250,000
Putting the values into the formula, we can get [tex]\frac{500,000}{250,000}[/tex]
predetermined overhead rate for machine hour = $2
We know the predetermined overhead rate is calculated to determine the estimated cost of manufacturing overhead or indirect cost to various cost pools.
