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Question & Answer: Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcomi…..

Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead 74,000 $767 per machine-hour $1,630,960 The predetermined overhead rate for the recently completed year was closest to O $22.04 O $29.59 O $7.67 O $2971

Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: The predetermined overhead rate for the recently completed year was closest to: $22.04 $29.59 $7.67 $2971

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Fixed Predetermined Overhead rate = Estimated total fixed manufacturing overhead / Estimated overheads

= $22.04

Variable predetermined overhead rate = $7.67

Predetermined Overhead rate = $29.71

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