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Edit View History Bookmarks Window Help 1) 100% Bi, Fri 5:55 PM- .. Kyle Masano 1 1/19/18 5:55 PM Time Remaining: 00:48:19 Submit Test This Test: 18 pts possibl tc Acct 1000 V0860 201 WI (A) Test: Week #2 Exam #4 This Question: 1 pt |0 of 18 (1 complete) Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. Al the beginning of the year, estimated total manufacturing overhead costs to be $1,000,000, total number of direct labor hours to be 4,500, and total number of machine hours to be 20,000 hours. What was the predetermined overhead alocation rate? (Round your answer to the nearest oent.) O A. $222 22 per machine hour O B. S5000per machine hour Oc se4 52 per direct labor hour O D. $40.82 per direct labor hour Click to select your answer 5 8

Solution

Answer is B

Estimated total mabufacturing overhead costs = $1,000,000

Estimated machine hours =20,000

Predetermined overhead rate =$50.00 per machine hour (1,000,000 / 20,000)