The management of blue ocean company estimates that 50,000 machine-hours will be required to support the production planned for the year. it also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. what is the predetermined overhead rate?

The answer is: The predetermined overhead rate is $10 per machine hour.

Explanation:

We must first determine the total overhead cost:

total overhead = fixed overhead cost + (variable overhead x machine hours)

total overhead = $300,000 + ($4 x 50,000) = $500,000

To get the predetermined overhead cost we divide the total overhead cost over the estimated machine hours.

Predetermined overhead cost = $500,000 / 50,000 = $10 per machine hour

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability