Sigel Corporation Bases Its Predetermined Overhead Rate on the Estimated

Essay

Sigel Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 52,000 machine-hours. The estimated variable manufacturing overhead was $3.40 per machine-hour and the estimated total fixed manufacturing overhead was $624,520.
Required:
Compute the company's predetermined overhead rate.