Answer:
Estimated manufacturing overhead rate= $115.98 per machine hour
Explanation:
Giving the following information:
variable manufacturing overhead cost of $9.50 per machine-hour
The fixed manufacturing overhead= $947,672 per period.
If the denominator level of activity is 8,900 machine-hours
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (947,672/8,900) + 9.5
Estimated manufacturing overhead rate= $115.98 per machine hour
