gilchrist corporation bases its predetermined overhead rate on the estimated machine - hours for the…

gilchrist corporation bases its predetermined overhead rate on the estimated machine - hours for the upcoming year. at the beginning of the most recently completed year, the corporation estimated the machine - hours for the upcoming year at 79,000 machine - hours. the estimated variable manufacturing overhead was $7.38 per machine - hour, and the estimated total fixed manufacturing overhead was $2,347,090. the predetermined overhead rate for the recently completed year was closest to _______ per machine - hour.\n$36.07\n$37.09\n$29.71\n$7.38

gilchrist corporation bases its predetermined overhead rate on the estimated machine - hours for the upcoming year. at the beginning of the most recently completed year, the corporation estimated the machine - hours for the upcoming year at 79,000 machine - hours. the estimated variable manufacturing overhead was $7.38 per machine - hour, and the estimated total fixed manufacturing overhead was $2,347,090. the predetermined overhead rate for the recently completed year was closest to _______ per machine - hour.\n$36.07\n$37.09\n$29.71\n$7.38

Answer

Explanation:

Step1: Calculate fixed overhead rate

Fixed overhead rate = Total fixed manufacturing overhead / Estimated machine - hours Fixed overhead rate = $\frac{2347090}{79000}=29.71$

Step2: Calculate predetermined overhead rate

Predetermined overhead rate = Variable overhead rate + Fixed overhead rate Predetermined overhead rate = $7.38 + 29.71=37.09$

Answer:

$37.09$