Biology Forums - Study Force

Jeffery Hospital Equipment Manufacturing Company produces high-technology equipment used to monitor brain activity. In preparing the current budget, Jeffery's management chooses to use an overhead base of machine hours. Jeffery estimates a total of $750,000 in manufacturing overhead costs and 15,000 machine hours for the coming year. In December, Jeffery's controller reported actual manufacturing overhead incurred of $820,000 and 15,300 machine hours used during the year.

Required:

a.	What is Jeffery's predetermined overhead rate for the year?

b.	How much manufacturing overhead did Jeffery apply during the period?

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