Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.
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Estimated machine hours
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75,000
|
|
|
Estimated variable manufacturing overhead
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$4.50
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per machine hour
|
|
Estimated total fixed manufacturing overhead
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$825,000
|
|
The actual machine hours for the year turned out to be 77,000.
Required:
Compute the company's predetermined overhead rate.