Transcribed Image Text: Strong Company applies overhead based on machine hours. At the beginning of 20×1, the company estimated that manufacturing overhead would be $500,000,
Transcribed Image Text: Strong Company applies overhead based on machine hours. At the beginning of 20×1, the company
estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By
20×1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of
this information, the 20×1 predetermined overhead rate was:
Select one:
a. $0.04 per machine hour
b. S0.05 per machine hour
c. $20 per machine hour
d. $21 per machine hour
e. $25 per machine hour
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