IFLA blackboardcomwebappsassessmenttakeunchJiap7course asses

IFLA! blackboard.com/webapps/assessment/take/unchJiap7course assessment id- 108371 18course y Question Completion Status: W. W. Nort × Purple Taka Tesorse Cost Accoux(AAdvanced Low B Your M into a O 1,210,000 QUESTION 3 Landon Corporation wishes to develop a single predetermined overhead rate. The company\'s expected annual fixed overhead is $340,000 and its variable overhead cost per machine hour is $2. The company\'s relevant range is from 200,000 to 600,000 machine hours. Landon expects to operate at 425,000 machine hours for the coming year. The plant\'s theoretical capacity is 850,000. The predetermined overhead rate per machine hour should be $2.40. $2.57 $2.80. O $2.85 QUESTION 4 1.00 Phoenix Corporation

Solution

The answer is 2.8

Out of it Variable overhead rate = 2

The answer is 2.8 Out of it Variable overhead rate = 2
And Fixed overhead rate is computed as = Annual fixed overhead(340000)/(425000) machine hours
			=0.8
Therefore total predetermined overhead rate 2+0.8=2.8