Question Content Area

Thomlin Company forecasts that total factory overhead for the current year will be $11,883,000 with 150,000 total machine hours. Year to date, the actual factory overhead is $7,921,000 and the actual machine hours are 96,000 hours. The predetermined factory overhead rate based on machine hours is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a.$83 per machine hour

b.$124 per machine hour

c.$79 per machine hour

d.$53 per machine hour