Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
| |
|
|
| Machine-hours required to support estimated production |
|
150,000 |
| Fixed manufacturing overhead cost |
$ |
657,000 |
| Variable manufacturing overhead cost per machine-hour |
$ |
4.30 |
|
| 1. |
Compute the predetermined overhead rate
|