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Posted: June 10th, 2024

A company estimates $10M in direct labor and overhead costs

A company estimates $10M in direct labor and overhead costs for the next year will be $7,500,000 for indirect labor and $650,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 250,000 machine hours are planned for this next year, what is the companyâs plantwide overhead rate?A. $.0306 per machine hour. B. $32.60 per machine hour. C. $30.00 per machine hour. D. $2.600 per machine hour. E. $.0137 per machine hour.

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