Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of
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Question:
Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $250,000 and machines would be run a total of 10,000 hours. Its actual total manufacturing overhead for the year was $236,400 and its actual total machine-hours was 16,500 hours.
Required:
Compute the companys predetermined overhead rate for the year. (in per MH)
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