Benoit Corporation's manufacturing overhead includes $13.20 per machine-hour for variable manufacturing overhead and $555,408 per period for fixed manufacturing overhead.Required:Determine the predetermined overhead rate for the denominator level of activity of 5,700 machine-hours.
What will be an ideal response?
Predetermined overhead rate = Estimated total manufacturing overhead/Denominator level of activity
= [($13.20 per machine-hour × 5,700 machine-hours) + $555,408] ÷ 5,700 machine-hours
= $630,648 ÷ 5,700 machine-hours
= $110.64 per machine-hour
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