Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data
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Question:
Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.
| Estimated machine hours | 75,000 |
|
| Estimated variable manufacturing overhead | $4.50 | per machine hour |
| Estimated total fixed manufacturing overhead | $825,000 |
|
The actual machine hours for the year turned out to be 77,000.
Required:
Compute the company's predetermined overhead rate.
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