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Seahorse Manufacturing Company uses applied overhead rate for allocating its manufacturing overhead to its products. The following information is estimated for the upcoming year; Budgeted
Seahorse Manufacturing Company uses applied overhead rate for allocating its manufacturing overhead to its products. The following information is estimated for the upcoming year; Budgeted Manufacturing OH is $1,200,000, Budgeted Direct Materials Cost $600,000, Estimated Direct Labor Hours 300,000, Estimated Machine Hours 750,000. What is the predetermined manufacturing overhead rate (applied overhead rate), if the company uses machine hours as the cost driver?
A. None of these.
B. $2.40/ mh
C. $1.60/mh
D. $1.20/ mh
E. $3.60/mh
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