Acompany estimates that overhead costs for the next year will be $8,268,000 for indirect labor and $161,600 for factory utilities. the company uses machine hours as its overhead allocation base. if 400,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (round to two decimal places)
a. $21.07 per machine hour.
b. $26.07 per machine hour.
c. $.40 per machine hour.
d. $20.67 per machine hour.
e. $20.75 per machine hour

The correct answer is A.

Explanation:

Giving the following information:

A company estimates that overhead costs for the next year will be $8,268,000 for indirect labor and $161,600 for factory utilities. The company uses machine hours as its overhead allocation base. 400,000 machine hours are planned for this next year.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (8,268,000 + 161,600)/400,000= $21.07 per machine hour.

answer; i believe that the correct answer is (strain);

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%