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Bonita Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, Bonita uses a job
Bonita Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, Bonita uses a job order costing system. During the month of June, Bonita worked on orders for three churches: Faith Church, Grace Church, and Hope Church. Production on the Faith and Grace orders began in May, and the Faith job was completed in June. Production on the Hope order began in June and was incomplete at the end of the month. Bonita applies overhead to each job based on machine hours. Prior to the year, managers had estimated manufacturing overhead at $ 864,000, along with 24,000 machine hours. Additional cost information related to the three orders is as follows: Faith Grace Hope Beginning balance, June 1 $ 4,500 $ 2,600 Direct materials, June $ 8,000 $ 6,500 $3,600 Direct labor, June $ 13,400 $ 7,200 $5,900 Manufacturing OH, June ? ? ? Machine hours, June 2.100 1,400 1,500 Your answer is incorrect. What is Bonita's predetermined overhead rate? Predetermined overhead rate $ / machine hour
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